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El Salvador’s Chivo Bitcoin Wallet Not Compulsory for the Citizens

El Salvador's Chivo Bitcoin Wallet Not Compulsory for the Citizens

Citizens will not be forced to use the government-issued “Chivo” Bitcoin wallet. This is according to the latest announcement from El Salvador’s pro-Bitcoin president, Nayib Bukele.

President Bukele tweeted on June 29 that he wanted to clear up any confusion about the government’s wallet app. This follows the country’s Bitcoin law’s passage on June 9, which will be in effect from September 7.

‘Chivo’ Wallet

Chivo, El Salvadorean slang for “cool,” the new Bitcoin wallet, can store both Bitcoin and US cash. It is only one of several crypto wallets that are accessible, according to Bukele. Bukele also emphasizes its interoperability with other wallet apps.

Addressing Privacy Concerns

To alleviate privacy fears, he said that the government already possesses the personal information sought by the wallet, underlining that any demands for personal data within the app are for security reasons.

No Charge Transactions

Bukele further stated that the Chivo wallet would not charge any fees or commissions for transfers. He said that, unlike existing crypto exchanges, it will not take a cut when converting BTC to USD and vice versa. In addition to that, unlike credit cards, merchants and users will not be charged commissions.

The Extensive Promotion

Bukele noted that any money held or received in USD or BTC in the Chivo wallet is withdrawable into USD currency at any moment now. This follows after the government has finished the roll-out of 200 new physical Bitcoin ATM branches, nicknamed “Chivo Points” or “Chivo ATMs.”

The president also declared that the $30 government BTC giveaway planned on June 25 would not convertible into US dollars, stressing the administration’s desire to promote Bitcoin and the Chivo wallet.

Chivo May Become a GameChanger

The new digital wallet initiative in Central America has the potential to change the country’s monetary policies. According to a Nasdaq study, over 70% of El Salvador’s population lacks access to bank accounts or other financial services.

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