El Salvador is looking to ensure that it sends out the right messaging about Bitcoin to its citizens. One way it is doing this is by ensuring that there is clear information about the government-owned Bitcoin wallet called Chivo, which translates to “cool” in English.
In a tweet, the country’s president has stated the government-owned wallet was in no way aimed at infringing at user privacy. He noted that any identification information that the wallet was asking for was already in the hands of the government.
The key goal of the wallet is to make Bitcoin as accessible as possible to the average citizen. For this reason, the government also gave out a $30 BTC handout to its citizen that would be accessible through the wallet. The government has stated that the $30 would not be convertible into USD or any other fiat currency. This would incentivize locals to spend in the form of Bitcoin.
Other features of the wallet include free BTC to USD conversions and interoperability with other Bitcoin wallets. The wallet is also free to use because, unlike a crypto exchange, the government does not have a profit motive.
The move by El Salvador to incentivize BTC adoption is an example of how low-income countries can take advantage of decentralized money.
According to a report by NASDAQ, over 70% of El Salvadorians do not have access to a bank account. The adoption of Bitcoin gives them access to sophisticated financial services without the need for legacy banking infrastructure.