El Salvador’s President, Nayib Bukele, claims that the government-backed cryptocurrency wallet Chivo is currently utilized by over two million individuals. El Salvador became the first country in the world to recognize Bitcoin as legal money alongside the US dollar earlier this month. Over the weekend, Bukele tweeted about the development, informing his almost three million followers. The president also expects that in a few years, the growing number of Chivo users would surpass El Salvador’s entire number of bank clients.
Bukele’s tweet said that 2.1 million El Salvador people are “actively utilising” the Chivo wallet, which was introduced just three months ago in June, indicating the success of legalizing Bitcoin payments.
Since he tweeted about it on September 26, Bukele’s disclosure has received over 40,000 likes and 7,000 comments. While some believed Bitcoin was the way of the future for El Salvador’s economy, others questioned the security of Chivo wallet’s security features, considering that the platform is not yet a full-fledged Bitcoin bank.
In the absence of its own currency, El Salvador has legalized trade and payments in Bitcoin, the world’s most valuable cryptocurrency. The Central American republic switched to the US dollar as its official currency in 2011.
According to sources, El Salvador’s decision to allow Bitcoin trading was driven by a desire to rev up the country’s sluggish economy in the wake of the continuing Coronavirus outbreak.
The Chivo wallet, which is supported by the government of El Salvador, was designed to help people deal in dollars and bitcoins from all over the world. According to a report by news portal TechStory.com, Bitso, a Mexican cryptocurrency exchange, has agreed to act as Chivo’s primary service provider.
Although El Salvador aspires to be a leader in the legal crypto field, some other nations are opposed to the legalization of cryptocurrency trading and transactions since these digital assets are not yet regulated by any international bank.
For example, China, the world’s most populous country, issued a blanket ban on cryptocurrency over the weekend. China used to have the world’s highest number of Bitcoin miners a few years ago. However, in 2019, the Asian behemoth labeled cryptocurrency trading as “illegal.” Despite being declared illegal, Chinese people continued to engage in the crypto sector, which is now considered a criminal offense in the country.
China, like other countries such as Russia and Morocco, has already raised worries about the unregulated and untraceable cryptocurrencies that can spend enormous sums of actual money anywhere in the globe with a single tap.
Furthermore, several anti-crypto countries have expressed worry about the huge energy consumption necessary by mass-level crypto trading and its implications on greenhouse gas emissions.
However, the quick rise of the cryptocurrency movement in nations such as India and Africa has been fascinating.
According to a survey, cryptocurrency usage in Africa increased by over 1,000 percent in the previous year, resulting in a stunning $105 billion in commerce.
Vietnam, India, Pakistan, and Ukraine are the top four countries in terms of cryptocurrency adoption. According to research issued earlier this month, bitcoin use in these countries increased by 880 percent in 2020.