Residents of El Salvador are experiencing more problems with the “Chivo” wallet system that the country has implemented. Chivo is designed to give all residents of the country access to bitcoin so that they can begin transacting it now that the currency is legal tender and designed to be used alongside USD, which the nation has long been dependent on.
El Salvador Sees Issues with Its Chivo Wallet
The goal is certainly impactful, but to say that the Chivo wallet hasn’t been problematic would be false and inaccurate. The system has experienced many periods of downtime due to technical instability. Many times, residents have not been able to gain access to their individual wallets, which has ultimately prevented them from taking out BTC or using their assets for purchases.
Now, however, it looks like the problem may be even bigger, as residents are not having trouble accessing their wallets. Rather, it looks like BTC is magically disappearing from them, and there is no clear answer on how to get any of it back. Many residents of El Salvador have gone to social media giants like Twitter to explain what’s happening to the world and talk amongst themselves.
El Salvador has been following a heavy bitcoin agenda for the past few months. The country announced last summer that it was going to make bitcoin legal tender beginning in September 2021. Despite a lack of assistance from financial organizations like the World Bank, El Salvador has pummeled through the opposition to do what so many countries have talked about but failed to implement… making bitcoin a legitimate currency.
The move was ambitious, no doubt, but the journey has certainly come with its fair share of problems, a big one being the technical issues stemming from the Chivo wallet. In addition, there have been many people in El Salvador that aren’t crazy about the idea of using bitcoin to engage in purchases or transactions. There have been many protests in the streets of San Salvador – the nation’s capital – from those who feel bitcoin is primarily used for criminal purposes and who say that they were perfectly fine using USD to get through the day.
Buying More When Things Fall
In any case, the country has taken a lot of unexpected turns to get things done. For example, regulators have established a whole new mining system in which machines are situated next to nearby volcanoes. Thus, they are using the thermal energy from the Earth to garner the electricity they need to extract new BTC units from the blockchain.
In addition, the country has been buying up bitcoin left and right every single time that a dip has occurred. With bitcoin suddenly dropping to about $47,000 per unit over the course of the last few days, don’t be surprised if Nayib Bukele – the president of the nation – decides to buy more.