Bitso to assist the launch of El Salvador’s official Bitcoin wallet Chivo. Mexican crypto exchange Bitso is introduced as a key partner for El Salvador’s state-issued BTC wallet.
The crypto exchange giant in Latin American, Bitso, will be the main crypto service provider for, Chivo, El Salvador’s official Bitcoin wallet.
In line with Bitcoin becoming legal currency in El Salvador, Bitso proclaimed on Sept. 7 it would work with Silvergate Bank, Athena Bitcoin, and Algorand on launching a BTC wallet which the government will fully support.
Silvergate Bank, a California state-chartered commercial bank and a United States Federal Reserve member, will collaborate with Bitso to expedite US dollar transactions for the Chivo wallet. Athena Bitcoin will handle numerous front-end services as well Chivo’s ATM-related procedures. While Algorand will perform as the official blockchain provider.
the state-issued Chivo wallet originally purposed to qualify individuals and businesses to send payments in BTC or dollars from around the globe.
Mobile users can access the wallet on Andriod and IOS. As well, automatically convert BTC transactions into US dollars. Or they can retain their BTC holdings to withdraw later in cash from 200 BTC ATMs positioned across the country.
According to Bitso’s spokesperson, Chivo network services will be fee-free for users. Indicating that no fees will be incurred for withdrawals, deposits, or any other transactions made with the Chivo app.
Bitso also highlighted that the use of the Chivo wallet is entirely optional, and for those without citizenship, the application is available as well.
Santiago Alvarado, vice president of Bitso for business, confirmed with certainty that El Salvador’s bitcoin adoption will result in positive leverage on the lives of millions of Salvadorans.
We have been working indefatigably for the last seven years to recognize the best route to make Bitcoin available for more than 2.75 million customers across Mexico, Argentina and Brazil. “Today, we are responsible for bringing crypto to Salvadorans. As the main crypto-service provider for El Salvador’s wallet” Alvarado added elaborated.
Following the launch of the Chivo wallet, Salvadoran president Nayib Bukele talked about temporary capacity flaws on the platform were resulting in app installation problems. Bukele stated that Chivo will temporarily disconnect its systems to resolve the issue. The president stated as well that Chivo will be accessible for all Salvadorans in the US and around the globe.
Salvadorans dislike BTC
Bitso originally established in 2014 and is one of the largest cryptocurrency platforms in Latin America. Backed by large crypto companies like Coinbase and Ripple. The number of the exchange’s users almost tripled from 1M in July 2020 to almost 3M by September 2021. Following a $250M capital raise earlier this year, the company appointed Facebook veteran Vaughan Smith as its chief operating officer. As part of the plan to account for 70% of Salvadoran citizens who lack basic financial services, President Bukele announced legislation in early June to accept Bitcoins as legal tender in addition to the U.S. dollar. Afterwards, the bill passed the National Assembly and scheduled for implementation on September 7.
El Salvador’s government plans to adopt Bitcoin as a legal currency have sparked several protests. Due to concerns over volatility and security. Bukele’s Bitcoin law recognizing BTC as legal tender should be repealed. According to El Salvador’s Central American University’s Institute of Public Opinion survey. Whereas 70% of Salvadorans opposed the legislation. On the other hand, more than 90% of survey respondents acknowledged the lack of basic understanding of cryptocurrency.