September 14, 2021

El Salvador: technical difficulties in bitcoin payments implementation

El Salvador: technical difficulties in bitcoin payments implementation

El Salvador suspended the registration of new users of the digital wallet Chivo and prohibited downloading the application on new models of smartphones. President Nayib Bukele cited a tight timeline for building infrastructure for the cryptocurrency as the reason for the problems.

We set ourselves too significant a goal - to implement everything in three months - and we made mistakes. But we are already correcting them, and hundreds of thousands of Salvadorans can use their Chivo without problems, he said

According to him, some accounts were blocked without completing the registration due to errors in the app.

Buquelet said that 95% of the technical difficulties with Chivo have been resolved, and the wallet "will start functioning 100% in the coming days."

The president also reported that:

  • The number of Chivo users has reached 500,000, or about 7% of the population;
  • The 200 cryptocurrency-enabled ATMs installed in the country are working without problems, as are 50 devices in the U.S;
  • 51 Chivo-supported offline outlets are also working "100%."
  • The minimum transaction size has been lowered from $5 to $0.01;
  • The list of cryptocurrency accepting companies and networks has expanded.

The head of state announced the addition of a feature to top up the wallet with credit and debit cards.

He also reminded that the use of the application is voluntary.

Recall that on September 7, a law recognizing bitcoin as an official means of payment along with the U.S. 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 cryptocurrency.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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