Salvadorans will not be forced to use the government’s Bitcoin wallet

There has been news lately about El Salvador and bitcoin. The country president is tagged to be the pro-bitcoin president because he believes so much in the crypto asset.

The El Salvador president, Nayib Bukele, made it clear that there will not be enforcement of the government-approved Chivo bitcoin wallet on its citizens.

Earlier today, El Salvador President, Bukele stated in a tweet that he needed to clarify any form of misleading information about the administrations’ wallet application after passing the bitcoin law earlier in June, although it will be effective starting 7th September 2021.

 Chivo, the new bitcoin wallet, means ‘cool’ in El Salvador. It is not only limited to holding bitcoin but also US dollars. Bukele pointed out the wallet user interaction and its compatibility with other crypto wallet applications.

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There was an announcement recently about the citizens of Central America receiving a free $30 worth of bitcoin in their Chivo wallets. The president stated that the $30 Bitcoin will not be exchangeable for US dollars, underlining the government’s aim to promote the use of the crypto asset and Chivo.

According to Nasdaq, about seventy percent of the country’s population have no access to a bank account, having less information on financial services. The new Chivo wallet creativity could transform monetary policy in El Salvador.

Unlike other cryptocurrency exchanges, Bukele states that there will not be transfer fees on this particular government-approved wallet. There will not be any charges converting Bitcoin to USD.

The government is also making moves on implementing two hundred physical BTC Automated Teller Machine (ATM) branches known as Chivo points. After completing these points, money received either in United States Dollars or Bitcoin in the Chivo wallet may be collected in USD cash.

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