Sunday, February 5, 2023

Bitcoin Gets Bumpy Start In El Salvador

As Bitcoin officially becomes a legal tender in El Salvador on September 07, the cryptocurrency receives a mixed reaction from the audience. 

Being a learner, El Salvador has taken a huge step from its side by legalizing Bitcoin in the country. A decade ago, Satoshi Nakamoto introduced Bitcoin with an aim of being used as decentralized money around the world, and finally, it has got that status in El Salvador.

However, the first day for Bitcoin as a legal tender in the country was not so promising because while processing the payment, several users faced some technical glitches. 

A report published by BBC stated that as soon as Bitcoin gets its legal status in the country, many users rushed to different networks to register themselves on a government-backed Chivo wallet. The servers of Apple and Huwaei were overwhelmed with the registrations, therefore, the customers were facing technical glitches.

On September 07, McDonald’s and Starbucks started accepting payments in Bitcoin through Chivo wallet. The wallet has been experiencing a huge surge in the Central American country, as more and more users have started joining the platform.

Notably, the wallet is accepting the payment in BTC and USD, however, the merchants have been advised to pay in bitcoin.

Ed Hernandez, a person who runs a family grocery shop in San Salvador, recently stated that he prefers fiat currency over cryptocurrency, as it protects him against fake banknotes.

One of the Twitter users named Jack Mallers explained to his followers the transaction process of sending BTC from the US to a friend of his in El Salvador.

He tweeted, “My friend was then able to cash out at one of the many chivo wallet ATMs, walking away with cold hard cash.

Did he need a bank account? Nope.

Did we need WesternUnion? Nope.

Did he need to use a specific wallet or get specific permissions? Nope.

Were there fees? Nope.”

The biggest problem arises for El Salvador was the flash crash, yesterday.

Johnny Wright Sol, the opposition leader, stated that it was a bad day for President Bukele and his government because the day Bitcoin was officially legalized in the country, it suffered a loss in the price.

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