Bitcoin in El Salvador: Chivo Digital Wallet Still Beset by Technical Glitches

Bitcoin was adopted as legal tender by El Salvador earlier this week.

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By Reuters | Updated: 11 September 2021 10:47 IST
Highlights
  • Technical glitches may discourage citizens to sign up on Chivo
  • Problems accessing the wallet, withdrawing money from ATMs were reported
  • User complaints have been stacking up in Apple's App Store

For a fourth day in a row technical glitches have beset the Salvadoran government's bitcoin digital wallet Chivo, a setback that could discourage residents from signing up to the app promoted by President Nayib Bukele.

Problems accessing the wallet, withdrawing money from ATMs, and data verification, as well as the government not depositing the $30 bonus Bukele promised all Chivo users were the most frequent issues, according to interviews with at least 10 users and user complaints posted on Twitter and Facebook.

Melvin Vasquez, a 30-year-old tattoo artist, downloaded Chivo on Tuesday, when the bitcoin law went into effect, but has since been unable to use it.

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"I want to see if I can buy something, but it won't even let me enter," Vasquez lamented, after trying to buy pizza at a restaurant on the outskirts of San Salvador. "They should have prepared more... It is not so convenient."

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User complaints were also stacking up in Apple's App Store and Alphabet's Google Play.

"I downloaded it and entered all my data. Now when I want to log in again, it doesn't let me and it doesn't recognize my pin or face ID. I don't have other options. Truthfully, a really bad app!," said one user.

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Bukele stepped in on Wednesday to manage the fraught roll-out of the payments app that underpins El Salvador's adoption of bitcoin as legal tender. Chivo, which promises commission-free transactions and his administration hopes will be adopted by the unbanked, has been disconnected several times to repair the glitches.

Bukele's administration is aiming for 2.5 million Salvadorans, some 39% of the population, to download Chivo, named after a local word for 'good.' He has argued that bitcoin would allow Salvadorans to save on $400 million each year in commissions for remittances.

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But many of the very people sending or receiving dollars to El Salvador are mistrustful of bitcoin. Some expressed fears of losing money, given the high volatility of the cryptocurrency.

Bitcoin has experienced daily trading moves of 10 percent or more 10 times this year, as it did both in 2020 and 2019, according to Refinitiv data. In 2018 and 2017, there were 17 days each year of 10 percent moves or more.

 As of September 11 (10:19am IST), Bitcoin price in India stood at Rs. 36.16 lakhs.


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Further reading: Bitcoin, El Salvador, Chivo
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