The President declared that Chivo will be the government’s national wallet as portion of the government’s drive to solidify its reputation as a Bitcoin-friendly nation. The government is airdropping $30 worth of Bitcoin to every resident to promote the usage of cryptocurrencies, according to the most recent trend in its Bitcoin adoption.
Nevertheless, the president stated that Salvadorans will only be able to access the funds after downloading and enrolling on the app. Bukele said that users may exchange Bitcoin to US dollars inside the app while giving a step-by-step demonstration on national television.
Furthermore, Chivo will not operate on internet data. The wallet app will function everywhere there is a phone signal, and you will not need a cell subscription to use it.
The software, which will be accessible for Android and iOS, will allow users to pay with QR codes. It will also be interoperable with several other digital wallets now available on the market. The adult population of El Salvador is estimated to be over 6.5 million people.
When an approximate assessment of the country’s population is taken into account, as per Yahoo Finance Anchor Zack Guzman, about $195 million in Bitcoin would be airdropped throughout the country. As per Statista, the count of persons aged 15 and up in El Salvador was 4.72 million as per a survey taken two years back.
Bitcoin, according to Bukele, has a number of advantages, including the ability to send money at any time of day and the ability to bypass middlemen. Nevertheless, there have been worries that Bitcoin might represent a significant obstacle, particularly in the area of wage payment. Worries about legal and macroeconomic difficulties have been highlighted by the International Monetary Fund (IMF).
Comparably, the World Bank has voiced its dissatisfaction with the plan to recognize Bitcoin as a legal tender. El Salvadoreans, on the other hand, are unconcerned about Bitcoin being a legal money since volatility might be a problem, but it could also benefit people who keep it.
According to Willy Woo of Onchain, Bitcoin will profit from the flood of Salvadorians if 4.5 million individuals take advantage of the program. Its worldwide user base is anticipated to grow by 2.5% in this instance.
President of El Salvador @NayibBukele has announced each registered citizen of their wallet app will receive $30 in free #Bitcoin
“The wallet app will even work anywhere with a cell connection, and you won’t have to have a cell plan for the app.” pic.twitter.com/6EiTNu4PGU
— Documenting Bitcoin 📄 (@DocumentingBTC) June 25, 2021