• Problems with the Chivo Wallet’s use haven’t been resolved. Users still complain about the Chivo Wallet, with some claiming to have lost their money.
• The President Nayib Bukele stated that approximately $2,000,000 per day is being remitted through digital wallets.
• While cryptocurrency adoption is increasing in India, it’s not growing in number of businesses that can accept bitcoin payments.

Although Salvadorans are increasingly using Bitcoin to purchase and sell, there remain technical issues with cryptocurrency in this small Central American country. It adopted BTC legal tender just a month before.

Salvadoran migrants have sent at most two million bitcoin per day to date through remittances. This was done using Chivo Wallets and ATMs set up by the Salvadoran government.

Even though bitcoin is legal and required, only a few companies accept Bitcoin payments. A series of technical issues related to Chivo have been arising since the day that the Bitcoin law was implemented.

Users who are in favor of the blockchain technology have expressed frustration at this. Adalberto Gálvez, a 32-year-old construction worker, told Reuters that he lost $220 when he tried to withdraw cash from the Chivo digital wallet.

Galvez said that the app stole his money but didn’t give him anything in return. Despite complaining, he still hasn’t been able to get his money back, he said. Although he had previously been using bitcoin without problems through another application called ‘Bitcoin Beach.’

Other’s have also experienced problems with the Chivo Wallet that the government launched with the purpose that Salvadorans could trade or save in bitcoin, as well as to thwart attempted identity theft and transaction fraud.

These user concerns have not been addressed by President Nayib Bukele’s government.

Rapid Adoption of Bitcoin

Despite all the flaws detected with the Chivo digital wallet (which means “Cool” in Salvadoran jargon) the adoption of Bitcoin has been very fast, especially among people who live abroad and need to send remittances to their families.

One fifth of Salvadorans rely on remittances. The Chivo Wallet makes it possible to send and receive money with no commission. The government also offers a $30 bonus to users who download the wallet.

Bukele reports that about half the nation, which is 6 million strong, has a digital wallet. The initial prediction by government was that there would only be 250,000 people. But this figure quickly surpassed.

The wallet was used by approximately 2.1 million people in September. According to estimates made by the Salvadoran Foundation for Economic and Social Development (SFESD), 12% have already used Bitcoin since its launch.

On Wednesday Bukele tweeted:

Salvadorans have been inserting more money (to purchase #bitcoin), than they withdraw from ATMs at @chivowallet.
“And if we add remittances (almost $2 million per day), the incoming USD QUADRUPLES the outflow. It is quite remarkable that this happens so quickly in the game.
According to the foundation’s survey, Bitcoin usage among companies remains low. Surveying 233 companies across different industries, 93% found no bitcoin payment reported by companies.

“We still aren’t sure about the benefits the government anticipated,”
Leonor Selva is spokesperson for National Association of Private Companies. Others in the country are skeptical of the potential use cryptocurrency.

Kripton Market, among others, was created in an effort to overcome this problem.

It is important to collect the bulk of remittances

Bukele’s goal is for the 2.5 million Salvadorans who reside in the U.S. to use the Chivo Wallet and ATMs to send remittances regularly. As part of this program, the Salvadoran government has installed 30 ATMs in Chicago and Los Angeles, Houston, Houston, Atlanta, and 50 more in El Salvador.

Bukele says that Chivo sends out 2 million dollars daily. El Salvador gets approximately 6 billion US dollars annually in US remittances, approximately 25% GDP. Since Bitcoin’s volatility still creates mistrust, the majority of these remittances come via bank transfers.

To The Flipside

• El Salvador’s government was harshly criticised in September over the drop in Bitcoin price. After the launch of cryptocurrency in El Salvador and China’s ban on BTC, prices for the currency plummeted.
• It decided to profit from the situation by buying 700 bitcoins at less cost. BTC is now rising, hovering near $53,000 USD this week.

Why you should care

• If the price of BTC continues to rise, along with the growing number of Chivo Wallet users despite its technical problems, the government of El Salvador’s commitment to the cryptocurrency may become favorable.
• BTC prices rose once more following the US Federal Reserve’s announcement about possible digital currency issuance. The other side, however, Morgan Stanley (NYSE:) The US’s largest investment bank has recommended crypto assets.

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