Developers of the Salvadoran Bitcoin wallet Chivo disabled the ability to view the price during a transaction. Some citizens used this feature to profit.
For exchange operations, the app freezes the Bitcoin price for one minute. During this time, users can compare the rate with quotes on trading platforms and take advantage of arbitrage opportunities.
If the price on third-party platforms rises, they buy the asset in Chivo, taking advantage of its fixed rate. When the rate on exchanges falls, they sell at the rate fixed by the app.
According to the developers, this creates “a source of endless income”, the only limit of which is the number of trades.
The Chivo operator has also decided to abandon price fixing and move to “instant conversion”. After implementing the changes, the app will resume showing the price, but in real time.
“The final price of a product or service is always guaranteed to the seller. We will soon enable the display of the Bitcoin rate for those who want to trade and even scalping, but it will be in real time, not frozen. This is how it should be,” the developers noted.
Earlier, President Nayib Bukele stated that citizens contribute far more US dollars to Chivo than they withdraw.
The law recognizing Bitcoin as legal tender came into force on September 7, in the first week after that the crypto wallet encountered technical problems, Bukele had previously acknowledged.
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