El Salvador has become one of the first countries in the world to adopt cryptocurrency as its legal tender. This means that people can use an app to pay merchants through Crypto.
The Chivo app, which is a digital wallet, was introduced recently which helps facilitate the exchange. It is a new and unique way of introducing the general public to cryptocurrency and many crypto enthusiasts have lauded the move. Soon after its implementation the app started showing faults and did not work the way it was intended to.
The legal counsel from the Presidential house of El Salvador reminded that merchants need to accept BTC as a form of payment. Using the Chivo app people will be able to pay using BTC. Javier Aguerta a representative of the legal counsel said that it is mandatory for merchants to accept Bitcoin,
They also added that any business found refusing BTC as payment will be in violation of the local rules and regulations. The law is in the gray area but the legal counsel has made it clear that businesses not following the order will be tried under the consumer protection laws of the country.
The Chivo app and digital wallet let people transfer U.S. dollars and BTC. It is being maintained by Bitso, a Mexican cryptocurrency exchange which in turn is working in tandem with Silvergate bank based in California.
The app allows the merchants to convert the bitcoin that they receive into dollars. This was a welcome move by many and the world now waits for how the cryptocurrency will perform here.