El Salvador became the first country to legalize bitcoin as currency on Sept. 6, garnering both praise and criticism from the worldwide community.
President Nayib Bukele of El Salvador claims that 2.1 million of his countrymen use the government-backed Chivo cryptocurrency wallet, providing insight into the country’s apparent success with Bitcoin (BTC).
The controversial president tweeted Saturday afternoon to his 2.9 million followers, stating that Chivo “already has more users than any bank in El Salvador” after only three weeks of existence. Bukele noted that it is only a matter of time before Chivo adoption surpasses the aggregate adoption of all banks in El Salvador.
El Salvador formally recognized Bitcoin as legal cash in early September, a momentous decision that might serve as a case study for other countries in the region. Individuals and businesses can use Chivo to send and receive payments in Bitcoin or US dollars from anywhere in the world. The wallet is compatible with Android and Apple mobile devices. As previously reported by Cointelegraph, Bitso, a Mexican cryptocurrency exchange, has agreed to serve as Chivo’s key service provider.
According to Bukele’s latest report, the Bitcoin Law is gaining support across the country, despite the fact that hundreds of anti-government protestors flocked to the streets to voice their objections. On Sept. 15, these protests culminated in the burning of a cryptocurrency kiosk in the country’s main city.
To be honest, the widespread acceptance of Chivo is partly due to the government’s airdrop of $30 worth of BTC to each Salvadoran account holder. According to a recent survey conducted by the organization Sherlock Communications in So Paulo, little more than half of Salvadorans have never heard of Bitcoin.
Meanwhile, Bukele’s government has been stockpiling BTC in response to the digital asset’s recent price volatility. El Salvador “bought the dip” on at least two recent price declines — on Sept. 7 and Sept. 20 — increasing its total holdings to 700 BTC.
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