Bitcoin acceptance can be accelerated with only a little political will. El Salvador declared Bitcoin legal money on September 7, 2021, and after just 20 days, 33% of the population is already utilizing El Salvadors Chivo Wallet.
El Salvadors Chivo Wallet really so Popular?
When El Salvador’s President Nayib Buquele declared in early June 2021 that he would make Bitcoin a national currency equal to the US dollar, the cryptocurrency community’s frenzy was equaled only by banking institutions’ fear and opposition.
Despite the latter’s tenacity, the Salvadoran government remained fast, and no one can call it a spectacular success.
President Nayib Buquele joyfully stated that, precisely 18 days following the implementation of Ley Bitcoin, a sizable percentage of the Central American country’s 6.4 million inhabitants have embraced El Salvadors Chivo Wallet:
“2.1 million Salvadorans ACTIVELY use the Chivo wallet (…) Chivo is not a bank, but in less than 3 weeks it has had more users than any bank in El Salvador, and it is rapidly progressing to have more users than ALL BANKS OF SALVADOR combined.”
More Countries ready to Switch to Bitcoin?
El Salvadors Chivo Wallet, which is based on the Lightning Network, enables people and companies to send or receive Bitcoin payments from anywhere in the world almost instantaneously and for free.
Despite the fact that a few angry protestors vandalized and burned one of Chivo’s 200 ATMs, a third of the population has chosen to try Bitcoin and love it because, according to President Bukele, they are “active” users. The $30 in BTC provided to each person who downloaded Chivo should have helped in this achievement as well.
Many other Latin American countries and other nations may now consider following El Salvador’s lead in terms of Bitcoin adoption intuitiveness. Residents of Panama, Honduras, and even a huge area like Brazil are becoming increasingly serious about incorporating the use of Bitcoin into their national economy.
Meanwhile, El Salvador’s government maintains its Bitcoin initiative, buying more as the price of Bitcoin falls. Indeed, President Buquelet stated on September 7 and 20 that El Salvador’s government “purchased the dip,” purchasing 150 BTC each time, increasing the country’s Bitcoin reserves to 700 BTC.
Doubts about the Active Users of El Salvadors Chivo Wallet
Some Redditors expressed concerns about the number of active users. Many people said that it was only the number of downloads and that consumers would earn $30 for the download.
The concerns appear to be valid. There will be a fault in the statistics if the one-time usage of El Salvador’s Chivo Wallet to collect the $30 adds to active users.
Some Redditors commented on /r/Bitcoin:
“Ppl are downloading the app just to take the $30, no one will use it for other propuse, I’m sure about that bc I actually live in El Salvador… the chivo atms are full of ppl taking the $30 and companies’ employees changing their btc to cash and get less money for the exchange, also the common people can’t afford taking risks of loss money when the price down, I have some money on btc but it’s part of my extra money, not much people have this condition sadly” – menaceDen
“The info comes from the goverment, I truly doubt that many people are using the app. Perhaps they registered to get the free $30 and that’s it.” – MadeInLosSantos
It remains to be seen whether consumers will continue to utilize the Chivo wallet. The following several months will undoubtedly offer some updates on the active users. We wish El Salvador the best of luck, but we understand why the country’s residents are hesitant to utilize Bitcoin due to its volatile pricing.