Technology

Salvador surpasses half a million Bitcoin wallet users, opens ATMs in the United States

Tuesday, September 14, 2021 ((rezonodwes.com)) –

El Salvador has exceeded 500,000 users of the Chivo wallet to carry out transactions with bitcoins. The Chivo Wallet system has also opened ATMs in nine cities in the United States, according to President Nayib Bukele.

“We currently have more than half a million users (of the Chivo wallet),” Bukele wrote on Twitter, a week after El Salvador became the first country to use bitcoin as legal tender, with the aim of recovering its stagnant and dollarized economy 20 years ago.

The “Chivo Wallet” is an electronic wallet that Salvadorans inside and outside the country can download to their mobile phones to carry out transactions in this cryptocurrency. Those who install it receive the equivalent of $ 30 in bitcoin to start working.

The president also said that the 200 ATMs installed in different parts of the country “are working perfectly,” as well as the 50 ATMs that have been activated in the US cities of San Francisco, El Doral, Atlanta, Chicago, Dallas, El Paso. . , Houston. , Laredo and McAllen.

“In the United States, we have Chivo ATMs (which you can use to recharge without paying commissions) where local law allows it,” the president explained. He explained that “technical errors” of the “Chivo Wallet” are corrected “95%” and promised that in the next few days it will be fully operational.

The possibility of recharging with any credit or debit card will also be activated from Tuesday. It also removed the minimum $ 5 amount needed to transact with other wallets, which has become a penny.

At the local level, according to the governor, “every day more companies accept payments in bitcoins or dollars, using other applications and also the Chivo wallet. And remember that its use is optional, “said Bukele.

According to Salvadoran law, all companies must have the technology to accept bitcoin transactions. However, the entrepreneur can choose between keeping the cryptocurrency or activating the option that the final income falls in dollars.

The government hopes that the use of bitcoin will help the population’s banking and capture the more than $ 400 million in remittance commissions that Salvadorans send from abroad through financial entities. Sending money from abroad is an important engine of the Salvadoran economy, equivalent to 22% of GDP. Some 3 million Salvadorans live outside their territory, including 2.5 million in the United States.

Tax exemption for foreigners?
The Nukele government has announced that it will exempt foreign investors from taxes on their Bitcoin income.

If El Salvador’s Bitcoin movement survives the initial period without major problems, it could generate big waves, especially in other countries in South America.

Panama, for example, could be the next state to legalize cryptocurrencies, as the Congress of that country tries to pass a bill that would make Bitcoin and Altcoins accept payment options in all sectors of the world, its economy. .

DW.com

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