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El Salvador has been in the news for months now, with the country being the first to accept Bitcoin as legal tender. Ever since the news broke, critics have expressed differing opinions about its meaning for the El Salvador people.
However, it would appear that Bitcoin adoption might be ramping up in the Central American country.
Chivo Grows Its User Numbers
Last weekend, President Nayibb Bukele of El Salvador said on Twitter that his country’s Chivo Bitcoin wallet had already gotten 2.1 million downloads. Bukele said that Chivo now has more users in El Salvador than any banking institution in the country.
The El Salvador government had launched Chivo to offer seamless payments and transactions in Bitcoin. These services would be available for citizens and businesses in the country. Furthermore, increasing numbers for Chivo are a good sign for the government. For instance, it has already faced significant backlash for its decision to accept Bitcoin as legal tender. Lastly, Bukele understands this, and he was more than happy to let his Twitter users know.
Of course, this doesn’t necessarily mean that the work is over. El Salvador remains top on the list for crypto critics. Many of them believe that Bukele and his administration have been out of touch with this move. The government will need to show more than Chivo’s increasing numbers. Only this way they can convince detractors that accepting Bitcoin was a good move.
Not Out of the Woods Yet
The adoption gambit for El Salvador has been a murky one. Ever since Bukele announced his Bitcoin legal tender plans, the critics have criticism come out of the woodwork. Members of international bodies like the World Bank and the International Monetary Fund (IMF) have criticized the move, warning that it could have significant problems for financial stability.
Buckle’s own people have also revolted against the Bitcoin law. Many took to the streets to express their dissatisfaction with the law. They explained that Bitcoin isn’t exactly the solution to many of their problems at this time.
Even worse for Bukele is that many El Salvadorians don’t seem to know what Bitcoin is. Last week, Sherlock Communications – an agency based out of São Paulo – published the report of a survey conducted on citizens. Among other things, the survey found that 54 percent of respondents didn’t know anything about cryptocurrencies.
If anything, this presents an opportunity to teach more people about crypto and its potential. Bukele and his administration can’t rest on their oars, even though Chivo’s rising user numbers are a good sign.