₿ Bitcoin: Bitcoin Legal Tender

El Salvador’s Bitcoin‑as‑legal‑tender program is experiencing a dramatic contraction in everyday usage, with reports indicating a decline of over 99% in transactions since the launch. The sharp drop appears linked to a combination of user fatigue, limited merchant participation, and the perceived inconvenience of the Bitexco wallet, which has struggled to attract a critical mass of adopters. This trend erodes the intended network effect that underpinned the country’s flagship crypto experiment and signals a potential reassessment of the policy’s viability by Salvadoran authorities. From a broader geopolitical lens, the slump weakens the narrative that Bitcoin can serve as a sovereign digital currency in a developing economy. It may dampen risk appetite among investors who view the Salvadoran case as a precedent for state‑backed crypto initiatives. Additionally, reduced transaction volume could impact the local liquidity of Bitcoin, compressing the bid‑ask spread and potentially increasing volatility in the region.