El Salvador continues to buy Bitcoin

The President of El Salvador, Nayib Bukele, announced that the state-owned Bitcoin (BTC) app and wallet Chivo now have 1.1 million users, or 17% of the country’s population – although the app is still not rated for “65% on mobile devices “available” is used nationwide. Bukele also reported that with BTC price falling over the weekend, El Salvador is buying bitcoin again.

El Salvador continues to buy bitcoin

Bitcoin price plunged 5% from a daily high of $ 48,234 to a daily low of $ 45,394, causing hundreds of millions of dollars to be liquidated. The drop in the price of the top cryptocurrency presents itself as a buying opportunity for El Salvador, the first country to make BTC legal tender. President Nayib Bukele shared on Twitter that they bought another 150 BTC, valued at $ 6.8 million.

El Salvador currently owns a total of 700 BTC, which began buying in the second week of September 20 after the official introduction of Bitcoin as legal tender. The president also recommended that instead of panicking at these price drops, people should buy more BTC.

The government has strongly encouraged the use of the Chivo app – despite claiming that the use of Chivo is optional – by giving $ 30 BTC to app downloaders in El Salvador as a reward.

Claims that the Chivo app and plan to introduce BTC have proven to be a success, Bukele writes on Twitter:

“It looks like we can attract more people in a month than previous governments in 40 years nationalizing and privatizing traditional banks.”

El Salvador continues to buy bitcoin, while observers have reacted with skepticism

El Salvador passed the Bitcoin law in June this year and made it legal tender on September 12, however, the introduction of BTC in the country has not gone smoothly. First, the World Bank and IMF warned the small Central American country of the catastrophic effects of BTC adoption on its economy and also refused to help the country with the technical integration of BTC. Subsequently, several rating agencies, including Fitch and Moody’s, downgraded Salvador’s creditworthiness.

Despite outrage over the introduction of Bitcoin and a series of protests in the country, many of which turned violent and resulted in the burning of Bitcoin ATMs, Bukele claims that the majority of society is happy with the decision and they use BTC for their daily needs use . Bukele also emphasized that the total number of downloads of the official Bitcoin wallet app Chivo exceeded half a million within two weeks of its launch.

Despite the criticism, the rollout of Chivo still appears to be in progress. The latest data from CoinATMRadar shows that there are currently 231 Chivo ATMs in operation, with 31 of those ATMs located in the United States. Bukele previously stated that the number is actually higher – with 50 units in the US.

But the technical problems seem to persist. A cellular network called Digicel said its SMS service was down for a minute on September 19 due to “high demand” for Chivo app downloads.

Bukele admits that “a problem with the SMS provider caused an error in 28,000 Chivo subscription requests” – causing problems worth an hour. He says the result is 28,000 new users who have not yet received $ 30 BTC – but added that his engineering team will make sure they get the funds soon.

El Salvador has not only taken an important step towards the adoption of Bitcoin by the countries, but has also created a domino effect on other financially troubled countries that are currently heading for a revival of Bitcoin. Cuba and Panama could be next.

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