El Salvador's Bitcoin Payments Decline Amid Shift to Cards

El Salvador's efforts to make Bitcoin a part of its financial policy have hit a snag. According to Jon Atack, a Bitcoin Core contributor who resides in El Salvador, everyday Bitcoin payments have declined significantly at merchants.

A restaurant in El Zonte, the coastal community known as 'Bitcoin Beach,' told Atack that his lunch payment was their only Bitcoin transaction for the entire month.

The staff said that everyday Bitcoin payments had fallen substantially due to customers increasingly using cards instead.

Analysts have pointed to several factors behind the decline, including the tendency of Bitcoin holders to retain the asset as a long-term investment rather than spend it and the cryptocurrency's price volatility.

El Salvador made merchant acceptance of Bitcoin voluntary under its IMF loan agreement, giving businesses greater discretion over payment methods. The restaurant account from El Zonte reflects this shift towards card payments.