New Deal's unprofitable Bitcoin dive, digital wallet app El Salvador President "continues"

Bitcoin prices "tumbled" in the evening after El Salvador listed bitcoin as a currency on Tuesday, but that did not prompt the Salvadoran government to accept bitcoin.

On Wednesday local time, the President of El Salvador personally 'ported' the national Bitcoin digital wallet app to Twitter, making the # 1 digital wallet app available for download in the Apple Store in El Salvador this that day. However, the end result of this "big test" will have to be tested over time.

The owner takes the goods himself

After the bitcoin crash on Tuesday, Salvadoran President Nayves Bukele bought an additional 150 bitcoins to show his confidence in bitcoin.

Since then, Buckler has tweeted several tweets teaching the public how to download and use the Chivo app. It is a government-backed digital wallet app that allows digital payments for free. do not have a bank account.

The President of El Salvador personally sponsored the Chibo Wallet on Twitter.

According to the cash industry, about 70% of Salvadoran citizens do not have a bank or credit card. At the same time, Salvadoran economy relies heavily on migrants, who represent more than 20% of Salvadoran GDP. According to the report, more than two million Salvadorans live abroad, but they are still in contact with their country of origin, sending more than $ 4 billion in funds per year.

This is also one of the main reasons the Salvadoran government has chosen Bitcoin as a viable option. Because Bitcoin has the hallmarks of decentralization and globalization, it can provide Salvadorians with an easier way to avoid high costs when sending money home.

Thanks to pressure from the President of the Government for "deliveries", Chivo became the most downloaded product in the Apple Store in El Salvador that day.

Several people from Salvador reported issues downloading and setting up in Buckler's Twitter comment box, and Buckler responded directly to Twitter, asking the public to quit and restart the program when the Chivo app reports an error. . Additionally, Chivo is currently only available for download and use in the Google App Store on a few Android phones. Buckler will support the application to be used gradually for many future models of phones, but at the same time he will have to register many new numbers. so that the server is not saturated ".

JPMorgan Chase reported in a statement on Wednesday that several strategic proposals had been speculated in the Bitcoin legalization process in El Salvador. "These economic problems are not surprising because El Salvador has three months to prepare for this great experience."

Accepting Bitcoin still takes time

For El Salvador, a small country of less than 7 million people, using Bitcoin as a precious resource is a daunting task, and uncertainty remains as to the outcome of the experience, whether bitter or sweet.

"The eyes of the world are watching his country," said Douglas Rodriguez, governor of the Central Bank of El Salvador. "" The adoption of Bitcoin is a process that will take time to develop. "

Concerned that Bitcoin could promote counterfeiting, Rodriguez said the rules for using Bitcoin, established by the Central Bank of El Salvador, were designed to comply with tax rules and regulations welcomed by officials of law enforcement around the world.

According to Salvadoran Bitcoin law, the exchange rate of the cryptocurrency and other currencies, the US dollar, is determined by the market. In El Salvador, all commodity prices can be decided in Bitcoin, tax credits can be paid in digital currency, and Bitcoin business profits are tax deductible.

The Salvadoran president tweeted that stores, Starbucks and fast food restaurants in El Salvador have already supported Bitcoin payments. Salvadoran companies that refuse to use Bitcoin in their operations will be fined, according to foreign media reports.

However, there are still many companies and individuals who do not believe in the legality of Bitcoin in El Salvador. According to the report, Javier Siman, president and attorney general of the National Association of Private Businesses of El Salvador, tweeted that President Buckler was criticizing Bitcoin's volatility by forcing companies to give him a hug. pay attention to them.