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- El Salvador was the first country to use Bitcoin as legal money, drawing praise and controversy from around the world
- Nayib Bukele claims that 2.1 million of his fellow people use the Chivo cryptocurrency wallet, which is backed by the government
- The state-issued Chivo wallet launched in early September as El Salvador officially recognized Bitcoin as legal tender
El Salvador became the first country to accept Bitcoin as legal cash on September 6, drawing both praise and criticism from the international world. President Nayib Bukele of El Salvador claims that 2.1 million of his countrymen use the government-backed Chivo cryptocurrency wallet, indicating the country’s apparent success with Bitcoin (BTC).
Chivo has the largest number of users
After just three weeks in operation, the controversial president updated his 2.9 million Twitter followers, boasting that Chivo today has more users than any bank in El Salvador. Bukele believes it will only be a matter of time before Chivo adoption outnumbers all of El Salvador’s banks combined.
El Salvador formally recognized Bitcoin as legal cash in early September, prompting the development of the state-issued Chivo wallet – a watershed moment that might serve as a model for other countries in the area. Individuals and businesses can use Chivo to send and receive payments in Bitcoin or dollars from anywhere over the world. Both Android and Apple devices may use the wallet. According to Cointelegraph, Bitso, a Mexican cryptocurrency exchange, has agreed to serve as Chivo’s key service provider.
Even though hundreds of anti-government protestors flocked to the streets to voice their displeasure, Bukele’s newest report reveals that the Bitcoin Law is being welcomed favorably across the country. The burning down of a crypto kiosk in the nation’s capital city on Sept. 15 was the culmination of those protests.
Wide acceptance of Chivo is because of BTC airdrop in Salvadoran Account
To be sure, the government’s airdrop of $30 worth of BTC to every Salvadoran account holder contributed to the widespread acceptance of Chivo. According to a recent survey conducted by Sherlock Communications in So Paulo, little more than half of the Salvadorans have never heard of Bitcoin.
Meanwhile, following a series of wild price fluctuations for the digital commodity, Bukele’s administration has been stocking its coffers with BTC. El Salvador purchased Bitcoin on the cheap on at least two recent price decreases — Sept. 7 and Sept. 20 — bringing its total holdings to 700 BTC.
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.
