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- Two customers who previously had no problems moving cash to cold storage have alerted Blockworks that they are now unable to do so.
- According to local sources, citizens and business owners were also concerned about the amount of time it took to obtain funding.
- Other individuals have resorted to Twitter to express their dissatisfaction. One user’s effort to transfer bitcoin from a Chivo wallet to Binance was unsuccessful.
The Problems With Bitcoin
El Salvadorans utilizing state-run Chivo bitcoin wallets say they are unable to shift their assets to wallets outside the government’s control as cryptocurrency prices continue to fall.
Two customers who previously had no problems moving cash to cold storage have alerted Blockworks that they are now unable to do so. Under the condition of anonymity, the users spoke to Blockworks.
“Chivo is utterly untrustworthy, and we’re hearing more and more stories of fraud and theft every day,” said Andres Pineda, treasurer at Banco Cuscatlan in El Salvador, to Blockworks. “My account was hacked about a month ago, and I can’t even log in to see whether my cash is still there.”
Other individuals have resorted to Twitter to express their dissatisfaction. One user’s effort to transfer bitcoin from a Chivo wallet to Binance was unsuccessful.
Allegations And Complaints
The allegations are the result of months of complaints about Chivo’s security.
The application did not need a picture identification when it was launched in September, merely a date of birth and a national identity card number (akin to a social security number), leading to massive fraud.
According to local sources, citizens and business owners were also concerned about the amount of time it took to obtain funding.
As a result, individuals claim that just a few companies currently take bitcoin.
“The only businesses that are accepting bitcoin readily, aside from a few, are big corporations like Starbucks and McDonald’s that have tech teams to implement it,”.
This is the statement given by Alexandra Dumitru, a cryptocurrency consultant living in El Salvador.
“It’s a pretty small percentage of businesses in the country, especially considering how many small tiendas [convenience stores] and whatnot there are.”
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
