El Salvador's "Bitcoin Beach" Daily Payments Cool Down, Merchants Report Receiving Just One BTC Transaction Per Month

TechFlow reports, on August 26, according to Cryptopolitan, Bitcoin Core developer contributor Jon Atack stated that when he recently checked out with BTC at a restaurant in El Zonte, El Salvador (“Bitcoin Beach”), the staff said it was the first Bitcoin payment the store had received in nearly a month. Local merchants say consumers have mostly switched to paying with bank cards, and some employees are even unfamiliar with how to use Bitcoin payment apps.

The report points out that Bitcoin price volatility, the inconvenience of payments compared to card transactions, and holders’ inclination to hoard coins rather than spend them have collectively reduced the daily circulation of BTC locally. Although El Salvador retains Bitcoin’s legal tender status, under an IMF loan arrangement it has changed merchant acceptance of BTC to a voluntary practice.