El Salvador-based bitcoin wallet Chivo has surpassed 500,000 users

El Salvador’s Bitcoin wallet

Chivo has already surpassed 500,000 users, local news reports have revealed.

El Salvador

‘s sponsored

digital bitcoin

wallet Chivo has

already hit half a million users, according to local media reports

. The country launched the wallet on September 7.

As an incentive, users receive $30 in Bitcoin when they download the wallet for the first time. As of September 7, the country has purchased 400 Bitcoin

for its vault – which by all accounts is ambivalent to success. Sponsored Sponsored

El Salvador’s integration with Bitcoin

has had quite a rough start, as there have been several protests against their adoption. The protests have come from both opposition forces and citizens – the latter have marched in the streets and even filed a lawsuit.

The country has used a number of measures to encourage people to use Bitcoin. Foreigners, for example, are exempt from paying capital gains tax on their Bitcoin profits. In addition, they are granted permanent residency if they choose to move and entrepreneurial venture.

https://s32659.pcdn.co/wp-content/uploads/2021/09/El-Salvador.mp4Źródło: /u/kiarga

Some Salvadorans took

to

Reddit

to talk about the general sentiment around Bitcoin. The country celebrated its Independence Day on September 15, and many protested against the current government in the streets. News has it that vandals have destroyed Bitcoin ATMs in the country, another sign of dissatisfaction with the new law.

One Redditor spoke about how Bitcoin further cements existing inequalities – a concern that has been one of the main problems citizens have with the government. They also note that Bitcoins in a Chivo wallet can be seized by the government.

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One thing that cannot be denied is that BTC payments actually reduce the cost of cross-border payments. Other countries in the region are closely watching the development, which is the first of its kind.

Will more countries follow suit?

It is unlikely that many countries will follow El Salvador’s lead. Most governments are determined to release their own central bank digital currency (CBDC). Those that have accepted cryptocurrencies as an asset class have done so reluctantly and are working on creating a regulatory framework.

Ideas

ł to make bitcoin legal tender has been rejected by China, India and Russia. With large countries rejecting the asset as having such an important role in the economy, most other countries are likely to take the same stance.

Still, the bitcoin experiment in El Salvador could yield surprising results. If Bitcoin does indeed become a medium for cross-border transactions, it could encourage more countries to do the same.

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