According to El Salvador’s local media, the government-issued crypto wallet, the Chivo, which was launched together with the implementation of the Bitcoin Law, has already reached more than 500,000 downloads.
Salvadorans received $30 worth of bitcoin from the government when they downloaded the wallet to encourage them to use bitcoin. El Salvador has purchased 400 bitcoins to prepare for the Bitcoin Law rollout.
With the oppositions that the government has faced, both at home and abroad, when it first announced the passage of the Bitcoin Law, no one expected that the law would have a smooth start.
And indeed, they were right. Salvadorans have brought their protests to the streets, sending a clear message to President Nayib Bukele that they reject the Bitcoin Law.
Incentives
The government has prepared a series of incentives to encourage the use of bitcoin in the country. For foreigners, they will be exempted from paying capital gain tax from their bitcoin profits.
Also, the government said that they would provide permanent residency if foreigners would move into the country to start their bitcoin-related business.
Growing protests
When El Salvador celebrated its Independence Day last Sept. 15, protesters took advantage of this event to vent their opposition to the Bitcoin Law. Aside from marching on the streets, some citizens have even vandalized and burned Bitcoin ATMs as proof of their anger.
One of the biggest concerns of Salvadorans about the new law is that it could widen the inequalities in the country. Also, there is a high possibility that the government can seize the bitcoin assets of citizens who are using the Chivo wallet.
But out of these mounting headaches, bitcoin has already proven itself in reducing the cost of cross-border payments, a fact that critics cannot deny. Salvadorans have been suffering from the high cost of sending and receiving funds to and from abroad for a long time.
Image courtesy of Cointelegraph News/YouTube