• The government contracted an American company for help in resolving the issues after hearing so many complaints.
• The Chivo Wallet can have problems ranging from missing funds to failed transactions.
• A mayor’s office in El Salvador will start collecting taxes in BTC.

El Salvador’s government is trying to fix serious technical problems with the Chivo Wallet. There have been many technical difficulties with the state’s Bitcoin smartphone application since it was made legal tender.

Some users have complained of phishing attacks, downloading failures and the disappearance or restitution of their funds. In an attempt to try and correct these flaws in the digital wallet, the Salvadoran government has contracted the technological support services of American company ‘Alphapoint.’

The company “is adding its experience to offer financial services and access to bitcoin for millions of Salvadorans who are active using the Chivo wallet,” the government of Nayib Bukele revealed in an official press release.

The Chivo Wallet was an initiative to “provide millions of Salvadorans the opportunity to learn about the advantages of using bitcoin, access financial services, pay for goods and services, as well as the possibility of receiving and sending remittances without charging commissions,” the bulletin explained.

Since September 8, the first day of the Bitcoin Law’s implementation, there have been reports about operational problems with Chivo Wallet. They included a lack of interoperability between other wallets as transactions were either delayed or never materialized.

Similar problems were also discovered with bank accounts. The government was forced to take periodic maintenance to correct the situation. However, the problems with Chivo Wallet continue, according to local media.

The Flipside

• Many complaints have been filed about the digital wallet’s operation.
• BTC investors’ losses in the bear market have added to their woes.

President Bukele isn’t giving up on the idea and encourages Salvadorans to keep their wallet. Recently the Salvadoran leader predicted on his Twitter (NYSE:) account that Bitcoin will soon have “a gigantic price increase.”

He is also unperturbed even by repeated requests from the International Monetary Fund for the government’s revocation of the law that recognizes BTC legal tender due to financial instability risks.

Alphapoint offers asset trading, brokerage, tokenization and other services. El Salvador also has the support of the Athena Bitcoin Company, who originally designed the Chivo Wallet. They manufacture BTC ATMs.

It is unclear whether the Salvadoran government will retain Athena’s services or not. This company developed the BTC Vanguard 1 salary payment program for workers who preferred it. This software allows for the automated exchange of dollars into BTC.

BTC Tax payments

Meanwhile, the Ilopango mayor’s office has invited citizens and residents to pay their taxes using bitcoin. The mayor of the city close to capital city San Salvador, José Chicas, a supporter of Bukele, wrote on Twitter:

“Ilopango, welcome to the future. You can now make payments using the @ChivoWallet, without having to pay any fees or commissions. The taxes you pay are the work that we need.”
There are no details provided by the mayor about the BTC Tax Payment Program.

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