Early stumble as El Salvador starts Bitcoin as currency – Honolulu, Hawaii

Honolulu, Hawaii 2021-09-07 18:35:00 –

San Salvador, El Salvador >> El Salvador became the first country to adopt Bitcoin as fiat tender today, but deployment stumbled in the first few hours and President Nayib Bukele’s digital wallet used for trading is not working Said.

Part of the morning, the President of El Salvador became technical support for a country stepping into the world of cryptocurrencies. Bukele marshalled his Twitter account (more than 2.8 million followers) and explained to users what was happening.

Bukele explained that the digital wallet Chivo was disconnected while the server capacity was increasing.

The president said it was a relatively simple matter. “We prefer to fix it before reconnecting it,” Bukele said. He encouraged his followers to download the app and leave a comment on how it went.

Meanwhile, Bitcoin’s value plummeted earlier today, recovering about half of its loss after dropping from more than $ 52,000 per coin to $ 42,000. This is an example of volatility that many are worried about.

The government has promised to set up 200 Chivo cashiers and 50 Bitcoin attention centers.

The Associated Press visited one of the automated cashiers in the historic center of San Salvador. There, staff were waiting to help citizens who were initially less interested.

Asked if he downloaded the Chivo app, Emanuel Ceballos said he didn’t. “I don’t know if I’m going to do that, I’m still skeptical about using that currency.”

José Martín Tenorio said he was interested in Bitcoin, but didn’t download the app either. “I’m running to work. Maybe I’m at home tonight.”

In Santa Tecla, a suburb of San Salvador, a young attendant was waiting to help people at a help center.

Denis Rivera arrived with a friend because he tried to download the digital wallet app and was unsuccessful.

He said he didn’t understand why some people were “scandalized” by Bitcoin. “We’ve been using debit and credit cards for years and it’s the same e-commerce,” he said.

He endorsed it and planned to use the government-provided $ 30 as an incentive to try it. “I see how efficient and practical it is and based on that I decide if I will continue to use it.”

José Luis Hernandez, the owner of a hairdresser in the area, has come to look for information.

“I run a small business and want to know how to use the application and how much it costs,” says Hernández.

AP has confirmed that at least three international fast food chain restaurants are accepting Bitcoin payments via the Chivo Digital Wallet.

David Gerald, author of “The 50-Foot Blockchain Attack,” said that Bitcoin’s volatility today is likely to have little to do with El Salvador. “My first guess was Shenanigan, because it’s always Shenanigan,” Gerard said in an email.

“Bitcoin basically doesn’t respond to market forces or regulatory announcements,” Gerard said. “This kind of price pattern crashes sharply in a few minutes and then rises again, but is usually one of the big guys burning margin traders.”

According to Gerard, Bitcoin has so few transactions that it could have been a large holder who made a large sale to get cash.

Three recent face-to-face polls have shown that most Salvadorians disagreed with the government’s decision to make Bitcoin legal tender. Bitcoin joins the US dollar as the official currency of El Salvador.

The Legislative Assembly enacted the Bitcoin Act in June, and the Central American Economic Integration Bank is providing technical assistance to the government.

According to the law, Bitcoin can be used for any transaction, and any business with the technical capabilities to do so must accept payments in cryptocurrencies.

The government will support Bitcoin with $ 150 million in funding. To encourage Salvadorians to use it, the government provided $ 30 worth of credit to those who use Chivo.

Critics warn that lack of currency transparency can attract increased criminal activity into the country, and its volatile values ​​can quickly wipe out user savings.

Opposition groups marched in El Salvador to demand condemnation of the law permitting the use of Bitcoin.

Bukele said cryptocurrencies originally created to operate outside the government-controlled financial system would attract investment and save Salvador’s money when sending U.S. earnings to relatives in El Salvador. It says it will be useful. However, its use is optional.

Early stumble as El Salvador starts Bitcoin as currency Source link Early stumble as El Salvador starts Bitcoin as currency

Back to top button