In the wake of the adoption of Bitcoin as a legal tender in El Salvador, the Central American country is introducing an official Bitcoin wallet. The digital wallet named “Chivo” will facilitate the everyday use of Bitcoin. El Salvador announced that the wallet app will be released soon, as Bitcoin law would take effect from the 7th of September.
President Nayib Bukele also announced a $30 BTC reward for residents who download the app. Chivo can be downloaded on both Android and iOS devices and can run transactions to other digital wallets.
6 million people added to the crypto ecosystem in one go. 👏 pic.twitter.com/DVoW6vLrAK
— CZ 🔶 Binance (@cz_binance) June 25, 2021
El Salvador is serious about changing the crypto narrative and Bukele wants to see this happen. In a press conference, he extolled the resourcefulness of Bitcoin and the independence it offers from intermediaries. While the crypto community is praising the bold move of the Spanish-speaking nation, some organizations don’t feel so good about the law.
For instance, the International Monetary Fund (IMF) criticized the government saying that BTC as a legal tender would pose a great deal of economic issues for the country. Equally, the World Bank is refusing the approval of a loan request from El Salvador in that regard.
Why is El Salvador Keen to Adopt Bitcoin
The prospect of being the first sovereign entity to adopt BTC as a legal tender is appealing, however, there is more to the acceptance of Bitcoin in El Salvador. The nation’s president, despite criticisms and growing opposition, is bent on working out the integration. This isn’t unexpected as Bukele is a staunch Bitcoin faithful.
At the moment, El Salvador is dependent on the US dollar as a legal tender. The nation does not own a currency of its own and therefore considers the breakthrough cryptocurrency a good choice if it decides to pick a currency. Aside from this, a large number of El Salvadorans have no access to banking facilities; which would be a bygone issue if Bitcoin is adopted.
The only holdup from the implementation is the probabilities of scalability on the Bitcoin network. However, El Salvador is engaging a Lighting Network provider to help trigger efficient transactions.