Saturday, December 2, 2023

The debut of the Bitcoin currency in El Salvador was hampered by a malfunctioning wallet.

El Salvador became the first country in the world to adopt a cryptocurrency as its legal tender. This is a great move that will test the application of Bitcoin in real-life scenarios. Merchants will be providing their services in exchange for cryptocurrency.

But a few hours after the launch, the Chivo wallet had run into some major problems due to the network capacity. President Bukele said that the app was disconnected for a short while to boost network services so that they could handle the incoming traffic.

People were incentivized for downloading the app with a $30 dollar credit which could be used for any goods and services. The legal counsel also said the merchants not abiding by the law would face punishment.

People could only access the $30 after they had sent $1 to a friend. This referral system has been prevalent for a long time and boosts the number of downloads. The rollout received mixed reactions from both the users and experts alike. This was also combined with the price dip that happened at the same time.

The Price Dip

Many experts say that the price dip was a false alarm and people should keep a keen eye on the El Salvador rollout. The success of the currency in the country will serve as a future model of how to bring cryptocurrencies into an economy.

This will give more people insights into how it affects an economy and how the volatility of bitcoin affects the economy. The Chivo wallet may not have worked flawlessly at the start, but now is running effectively.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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