Bitcoin transactions at Salvadoran businesses plummet as holders favor long-term storage over daily use amid high volatility.
A Bitcoin Core contributor in El Salvador found a restaurant in El Zonte processed only one BTC payment in a month, down from frequent usage. Staff cited a shift to card payments as the primary reason for the decline.
The drop follows El Salvador’s decision to make Bitcoin acceptance voluntary under its IMF loan agreement. Analysts link the trend to a “HODL” mindset, where users treat BTC as a store of value rather than a transactional currency, compounded by price volatility.
No immediate market reaction was reported, but the decline highlights challenges in Bitcoin’s adoption as a daily payment method.