Chivo Wallet Soars In Popularity in El Salvador, despite glitches and population mistrust.
Impressive adoption numbers, driven by incentives
El Salvador president Nayib Bukele has claimed that 2.1 million citizens are using the new Chivo Wallet, after El Salvador recently adopted bitcoin as legal tender on September 7, 2021, being the first country to do so. The president initially touted it as a way to attract investment in the country. President Bukele’s administration is aiming for 2.5 million Salvadorans, which constitutes approximately 39% of the population. As an incentive, the government offers $30 in bitcoin when people download the Chivo wallet app.
Foreign bitcoin investors are exempt from paying capital gains tax on bitcoin profits, and will benefit from permanent residency. The Chivo wallet also enables free cross-border payments, and will save Salvadorans $400 million per year in remittance fees. Latin American Bitso crypto platform is providing backend technology and custody and exchange services to the Chivo wallet.