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- According to the latest announcement from El Salvador’s pro-Bitcoin president, Nayib Bukele, citizens will not be forced to use the government-issued “Chivo” Bitcoin wallet
- Bukele further said that, unlike existing crypto exchanges, the Chivo wallet will not collect any fees or commissions for transfers
- The new digital wallet project in Central America has the potential to change the country’s monetary policies
Citizens will not be forced to use the government-issued “Chivo” Bitcoin wallet, according to the latest declaration from El Salvador’s pro-Bitcoin president, Nayib Bukele. El Salvador’s President Bukele announced in a tweet on June 29 that he wanted to clear up any misunderstandings about the government’s wallet application following the country’s Bitcoin law’s passage on June 9, which will take effect on September 7.
Chivo, which is El Salvadorean slang for “cool,” is the name of the new Bitcoin wallet, which can contain both Bitcoin and US cash. It is only one of several crypto wallets that may be utilized, according to Bukele, who emphasizes its interoperability with other wallet apps. To alleviate privacy fears, he said that the government already possesses the personal information sought by the wallet, underlining that any demands for personal data within the app are for security reasons.
Bukele further stated that the Chivo wallet will not charge any fees or commissions for transfers, stating that, unlike existing crypto exchanges, it will not take a cut when converting BTC to USD and vice versa, and that, unlike credit cards, merchants and users will not be charged commissions. Bukele noted that any money kept or received in USD or BTC in the Chivo wallet can be withdrawn into USD currency at any moment now that the government has finished the roll-out of 200 new physical Bitcoin ATM branches, nicknamed “Chivo Points” or “Chivo ATMs.”
Bukele, a self-described anti-establishment populist, is El Salvador’s first president in 30 years to be elected without the backing of one of the country’s main political parties. He was elected president in 2019 on a platform of combating corruption and gang violence, and he now has a popularity rating of more than 85%. Prior to becoming president, the media-savvy leader worked at his father’s marketing firm before being elected mayor of San Salvador, the country’s capital, and a nearby suburb.
The president also stated that the $30 government BTC giveaway planned on June 25 will not be converted into US dollars, stressing the administration’s desire to promote Bitcoin and the Chivo wallet. The new digital wallet project in Central America has the potential to change the country’s monetary policies. According to a Nasdaq study, over 70% of El Salvador’s population lacks access to bank accounts or any other financial services.
The plan is anticipated to maintain Bukele’s reputation in El Salvador, where he is seen as a trailblazer, as well as boost Bitcoin’s attractiveness, which has experienced significant swings this year. It’s also viewed as positive news for the cryptocurrency market as a whole. Some crypto experts, however, have criticized the move, claiming that El Salvador could have looked into other crypto options that would have worked better as a currency than Bitcoin, whose three transactions per second processing rate is seen as too slow when compared to other virtual tenders like Bitcoin Cash or Monero.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
