Three years after El Salvador adopted Bitcoin: 90% of BTC service providers closed, the road to financial inclusion is slow and distant.

El Salvador was the first country in the world to adopt bitcoin as legal tender, but the latest data shows that nearly nine-in-ten service providers have ceased operations, and this ambitious digital currency experiment is being tested like never before. (Synopsis: El Salvador buys BTC to untie? The IMF included cryptocurrencies in the global economic report for the first time, recognizing bitcoin as an asset value) (Background supplement: Taiwan's central bank acid El Salvador: the abolition of bitcoin legalization is ironic, netizens choked "run and dare to laugh at the first place fall") El Salvador became the first country in the world to make bitcoin legal tender in 2021, with bold moves that hope to promote financial inclusion and attract foreign investment. However, according to the latest survey data released by the Central Bank of El Salvador (BCR) in mid-April, the actual progress of this digital currency revolution seems to be far less smooth than expected. The data shows that of the 181 bitcoin service providers registered in the country, only 20 (about 11%) are still operating, while as many as 161 (about 89%) have ceased service, undoubtedly casting a shadow over El Salvador's Bitcoin experiment. Nearly ninety percent of them are out of service! Data reveals El Salvador's Bitcoin Ecological Dilemma According to detailed data released by the Central Bank, 22 of the 161 providers that ceased operations were clearly pointed out as failing to comply with the relevant provisions of the Bitcoin Law on supervision of the financial system. The Bitcoin Act imposes clear compliance requirements on service providers, including implementing an effective anti-money laundering (AML) program, accurately recording the financial status of assets, liabilities and equity, and establishing a cybersecurity system that is commensurate with the nature of the service... These requirements are essential to ensure transparency and security in financial transactions, but meeting them can be a daunting task for many small service providers that are just starting out or have limited resources. Lack of sufficient expertise, technical capabilities or capital investment can make it difficult to meet regulatory requirements and eventually be forced to cease operations. Compliance issues are a pervasive challenge for the global cryptocurrency industry, especially in El Salvador, which may be related to its hasty implementation of a national bitcoin policy in a relatively short period of time. The lack of adequate preparation and transition periods has left many players unable to adapt to the new regulatory framework in a timely manner. As for the 20 providers still in operation, including government-backed Chivo Wallet, as well as Crypto Trading & Investment, Fintech Américas... Wait. While a handful of businesses have managed to stay afloat, the vast majority of failures show that El Salvador still has a long way to go in building a healthy and compliant ecosystem of Bitcoin services. Policy Shift and IMF Pressure El Salvador's policy of making bitcoin legal tender is one of President Bugleigh's key economic initiatives. However, while this policy has attracted widespread attention internationally, it has also faced many doubts, especially from the International Monetary Fund (IMF). In order to reach a $1.4 billion loan agreement with the IMF, El Salvador made certain policy adjustments. The Legislative Assembly removed Bitcoin's legal tender nature and regulatory acceptance requirements, and stipulated that the government would no longer be directly involved in intermediaries in Bitcoin transactions. These changes are seen as a signal of a move towards the traditional financial system and should theoretically help reduce the potential risks posed by bitcoin policies. Paradoxically, despite the agreement with the IMF, Bugley's government does not seem to have completely abandoned its Bitcoin vision. The government continues to buy bitcoin and currently holds more than 6,100 bitcoins worth more than $500 million. There appears to be a certain disconnect between this government action and its commitment not to use state funds to participate in bitcoin trading intermediaries under the framework of the IMF agreement, and has also raised concerns about its fiscal prudence at home and abroad. Read more: El Salvador can't bet on Bitcoin? 1.4 billion magnesium loan agreement with IMF will limit purchases of BTC Crossroads of El Salvador's Bitcoin Experiment The massive outage of Bitcoin service providers in El Salvador provides a valuable case for global observers concerned about national cryptocurrency adoption. This shows that even with strong government efforts, the popularity and success of digital finance is still highly dependent on a robust regulatory framework, a mature market ecosystem, and the industry's own compliance capabilities. El Salvador's Bitcoin experiment is at a critical crossroads. It demonstrates both the courage to embrace financial innovation and the regulatory and enforcement challenges that can be encountered in the face of rapid change. How to ensure financial stability and consumer protection while promoting the development of digital finance, and find a balance in the international financial system, will be a serious issue that El Salvador must face in the future. But at the same time, it continues to provide important enlightenment for countries around the world to explore the regulation and application of cryptocurrencies. Related reports AMD 9070XT is too fierce! The performance of the "Huida RTX 5070ti" price is only half, Nvidia Huang Jenxun is miserable? Bitcoin Kingdom Wake Up! El Salvador's low-key revision of the law has become the first country in the world to revoke BTC legal tender Salvador's president posted a bill: BTC reporting rate broke 133%! Did the local people make a lot of money? "El Salvador adopts bitcoin 3 years: ninety percent of BTC service providers are closed, and the road to financial inclusion is slow and far" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".