El Salvador’s Government-Backed Bitcoin Wallet Chivo launches soon
El Salvador’s government-backed Bitcoin wallet Chivo will be available starting in September 2021. It will take less than a month for the new Bitcoin law to take effect, which is an important step toward making Bitcoin a legal tender in El Salvador.
Bitcoin is Legal Tender in El Salvador
El Salvador’s government-backed Bitcoin wallet Chivo will be available for download beginning September 7, 2021, according to a tweet from National President Nayib Bukele. It will coincide with the enactment of the country’s Bitcoin law.
Salvadorans who download Chivo will receive a $30 reward in BTC, even though its use remains optional.
Chivo and Bitcoin are both non-binding, emphasized the head of state:
What if someone doesn’t want to use Bitcoin? Well, nothing. Nothing, just download the app and get on with your life.
However, this statement by the president of El Salvador seems to contradict the law governing the use of Bitcoin in the country.
It has now become law that businesses must accept Bitcoin as payment in order to stay compliant with the new law:
Every economic agent must accept Bitcoin as a means of payment when it is offered to it by a person purchasing a good or service.
We covered this in our recent News: Will Bitcoin become a Legal Tender in El Salvador?
The Bitcoin Acceptance and Distribution Points
There is a feature offered by the Bitcoin wallet Chivo that allows Salvadorans to automatically convert transactions that are received in Bitcoins into the sacred dollar.
In addition, wallet users will also have the option of using BTC in the HODL mode or withdrawing it as cash using the 200 ATMs located throughout the country. The citizens will thus have access not only to ATMs but to a number of withdrawal stations (known as Cajeros de Chivo).
With the help of the Bitcoin wallet Chivo, El Salvador appears to be on the verge of implementing its plan to make Bitcoin the country’s official currency, though the decision does not enjoy considerable support. Furthermore, the country intends to mine Bitcoin using its volcanoes to generate geothermal energy in order to build a more efficient infrastructure.
The launch of the Chivo wallet by El Salvador represents a major step forward for the country and for the Bitcoin world as a whole. It is this news that is causing organizations and institutions to gnash their teeth even more as they look at this country’s plunge into Bitcoin with an unkind eye.