Salvadoran bitcoin wallet Chivo has achieved great success since its launch in 2021. This was stated by Felipe Vallejo, the chief expert on the regulation of the Bitso crypto exchange, in a conversation with Cointelegraph.
Latin America's largest trading platform is the main provider of technical solutions for Chivo. Earlier, a representative of the company stated that it "provides custodial services, providing storage-related functions and application security, as well as exchange services."
According to Vallejo, the national wallet has achieved great success, despite the difficulties that have arisen. In September 2021, the President of El Salvador, Nayib Bukele, acknowledged technical problems with the implementation of the application, and in December it became known about the disappearance of user funds.
In February 2022, the government of the country announced the integration of the solution from AlphaPoint into Chivo. The New York-based startup has improved the wallet's user interface, fixed bugs, and added improved Lightning Network support.
"Thanks to our work with Chivo, we have seen how a significant part of the population has turned to using the app for secure and simple transactions," Vallejo said.
He referred to the work of the National Bureau of Economic Research, according to which 40% of those who downloaded the wallet continued to use it after receiving a $30 registration bonus in BTC.
According to a Bitso representative, 20% of Salvadorans worked with Chivo after they spent the funds issued by the state.
"The main obstacle to the adoption of cryptocurrencies both in Latin America and around the world is education. As we continue to provide Salvadorans with information and tools to better understand and use innovative technologies, we expect an increase in the pace of implementation," Vallejo added.
On September 7, 2021, a law on the recognition of bitcoin as an official means of payment along with the US dollar came into force in El Salvador.
After the bill was passed in June, the opposition called it unconstitutional. In August, rallies were held in the country against the legalization of cryptocurrencies.
Recall that a survey by the American organization National Bureau of Economic Research showed the failure of El Salvador in the experiment with bitcoin — 60% of those who downloaded Chivo did not use it after receiving the bonus.