Bitso Details Success of El Salvador’s Chivo Bitcoin Wallet

El Salvador’s bitcoin wallet Chivo has achieved great success since its launch in 2021, according to Bitso’s chief regulatory officer Felipe Vallejo in an interview with Cointelegraph.

The largest trading platform in Latin America is the main provider of technical solutions for Chivo. Earlier, a representative of the company said that it "provides custodial services, ensuring storage-related functions and the security of the app, as well as exchange services".

According to Vallejo, the national wallet has achieved great success despite the difficulties. In September 2021, Salvadoran President Nayib Bukele acknowledged technical problems with the rollout of the app, and in December it emerged that the funds of users had disappeared.

In February 2022, the government announced the integration of AlphaPoint’s solution into Chivo. The New York-based startup improved the wallet’s user interface, fixed bugs and added enhanced support Lightning Network.

“Thanks to our work with Chivo, we have seen a significant portion of the population turn to using the app for safe and simple transactions,” Vallejo said.

He cited work by the National Bureau of Economic Research, according to which 40% of those who downloaded the wallet continued to use it after receiving a registration bonus of $30 in BTC.

According to the Bitso representative, 20% of Salvadorans interacted with Chivo after spending the government-issued funds.

“The main obstacle to the adoption of cryptocurrencies, both in Latin America and around the world, is education. As we continue to provide Salvadorans with information and tools to better understand and use these innovative technologies, we expect adoption rates to rise,” Vallejo said.

On 7 September 2021 in El Salvador the law came into force recognizing Bitcoin as an official means of payment alongside the US dollar.

After the bill’s passage in June, the opposition called it unconstitutional. In August, protests took place in the country against cryptocurrency legalization.

A study by the National Bureau of Economic Researchfound that El Salvador’s Bitcoin experiment failed — 60% of those who downloaded Chivo did not use it after receiving the bonus.

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