Salvadorians won’t have to use the government-created BTC wallet Chivo that is interoperable and commission-free as we can see more from the reports in our latest Bitcoin news.
The latest announcement from the pro-BTC president Nayib Bukele clarified that Salvadorians won’t have to use the government Bitcoin wallet. Bukele stated that he wanted to clear up the misinformation regarding the wallet application after passing the country’s BTC law on June 9. The new Bitcoin wallet is called “Chivo” which is slang for “cool” in the country and it can hold both BTC and USD. Bukele stated that it is one of the many wallets that can be used, emphasizing interoperability with the other apps. To allay the privacy concerns, he added that the personal information requested by the wallet is currently in possession by the government and emphasized the requests for personal data within the app are only for security purposes.
Bukele outlined that the Chivo wallet won’t incur fees of commissions for the transfers and noted that, unlike traditional exchanges, it will not take a cut for converting BTC to USD and the other way around, and unlike credit cards tehre will be no commission charged for the users or the merchants. Bukele stated that the money is held or received in USD or BTC in the government-based wallet will be able to be withdrawn into USD cash at any time once the government completed its roll-out. The president clarified that the $30 BTC handed out to the people for downloading the wallet, will be convertible into USD in order to encourage the use of BTC and the Chivo Wallet.
The new digital wallet initiative could bring a revolution in the monetary policy in the Central American nation and 70% of the people in the country don’t even have bank access.
As reported recently, One of the big three credit rating agencies Fitch Ratings warns that Bitcoin’s expansion in El Salvador could bring many operational and financial risks for banks. Fitch said that Bitcoin as a legal tender could increase the regulatory, financial, and operational risks and. Fitch ratings cautioned that El Salvador’s decision to make BTC legal tender will put banks at risk of money laundering, tax evasion, and terrorist financing. President Nayib Bukele announced a week ago that BTC will become a legal tender but the World Bank, the IMF and other authorities criticized the move. The World Bank refused a new request from El Salvador to assist in the country’s implementation of BTC as a legal tender.
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