Salvadorans Avoid Using Government BTC Wallets: Report

Salvador doesn’t have to use a government-generated BTC wallet, Chivo is interoperable and commission-free as we can see from the reports in our latest bitcoin news.

The recent announcement by Pro-BTC President Nayib Bukele made it clear that Salvadorans are not required to use government Bitcoin wallets. Bukele said he wanted to clear up any misinformation regarding the wallet app after the country’s BTC law was passed on June 9. The new Bitcoin wallet is called “Chivo”, the slang word for “cool” in the country and can accommodate both BTC and US dollars. Bukele claims that it is one of many wallets that can be used and emphasizes interoperability with other applications. To address privacy concerns, he added that the personal data requested by the wallet is currently in the possession of the government and stressed that the personal data queries in the app are for this purpose only.

Bukele pointed out that the Chivo wallet does not incur any commission fees for transfers and noted that unlike traditional exchanges, there is no cutoff when converting BTC to USD and vice versa, and unlike traditional exchanges, there are no commissions for the user or the user Seller billed. Bukele stated that funds held or received in US dollars or BTC in government wallets can be withdrawn in USD cash at any time after the government completes implementation. The president clarified that $ 30 BTC, the people who download the wallet will be converted to USD to incentivize the use of BTC and the Chivo wallet.

The new digital wallet initiative could bring about a revolution in monetary policy in the Central American country, 70% of the population do not even have access to a bank.

As recently reported, one of the top three rating agencies, Fitch Ratings, warned that Bitcoin’s expansion in El Salvador could pose operational and financial risks for banks. Fitch says that as legal tender, bitcoin can add and increase regulatory, financial, and operational risk. Fitch ratings warn that El Salvador’s decision to legally bid for BTC puts banks at risk of money laundering, tax evasion and terrorist financing. President Nayib Bukele announced a week ago that BTC would become legal tender, but the World Bank, IMF and other authorities have criticized the move. The World Bank has rejected a new application by El Salvador to help the country introduce BTC as legal tender.

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