Despite the Salvadoran government's persistent efforts to encourage widespread cryptocurrency adoption, a recent CoinGecko report sheds light on the limited number of cryptocurrency owners within the country.
Released on December 7, the report emphasizes El Salvador's unique status as the sole nation globally actively utilizing cryptocurrencies as legal tender. Nonetheless, the proportion of the populace presently possessing Bitcoin (BTC) remains relatively modest.
The data from Triple-A indicates that around 109,175 individuals in El Salvador hold Bitcoin, representing approximately 1.72% of the country's population, which stands at 6.36 million.
El Salvador stands at the 55th position in the Global Cryptocurrency Adoption Index. Surprisingly, some nations, despite banning cryptocurrencies, are witnessing faster growth rates. For instance, despite China's prohibition on digital assets, a larger percentage of its citizens reportedly own cryptocurrencies.
The report highlights that an estimated 4.08% of China's total population, approximately 58 million people, currently possess cryptocurrencies, indicating higher ownership rates compared to El Salvador.
President Nayib Bukele of El Salvador revealed that the country's cumulative Bitcoin investment has surged to $131 million. As of December 4, the net profit accounted for $3.6 million, reflecting a total gain of 2.84%. Concurrently, the Salvadoran government has intensified efforts to elevate domestic cryptocurrency investment.
Reports on December 8 unveiled the country's initiation of a new citizenship by investment program. This program offers a residence visa and citizenship path to individuals willing to invest $1 million in Bitcoin or Tether (USDT) within the nation. Additionally, several prominent firms, such as BlackRock, Fidelity, VanEck, Valkyrie, and Franklin Templeton, are pursuing approval for a spot Bitcoin ETF. Although the Securities and Exchange Commission (SEC) has not yet signaled support for the applications, it has recently engaged in discussions with representatives from applicant companies to refine technicalities within their fund proposals.
VanEck anticipates SEC approval for a spot Bitcoin ETF in January and anticipates substantial inflows of $2.4 billion in the first quarter.
