A sharp crypto price drop and technical issues have clouded Bitcoin’s debut as legal tender in El Salvador.
The birth pangs associated with the introduction of Bitcoin as legal tender in El Salvador have been harsh: protests on the streets, critics arrested by police without charge, reprimands from international organizations and a state of national insecurity have set the tone in the last 90 days. In short: since President Nayib Bukele has put the country on this path.
But even now that Bitcoin is officially legal tender in El Salvador, the first hours of the experiment were not exactly pleasant. Starting with the market’s obvious reaction to today’s launch.
Bukele announced last night the purchase of 200 Bitcoin (worth about 10 million dollars). In addition, the president announced that the country has already bought 400 BTC for its reserves. At that point, the Bitcoin price was over $ 50,000 per coin, approaching $ 53,000, which apparently met with enthusiasm. However, hours later, the Bitcoin price plunged by more than 10%, giving El Salvador the first losses of several million dollars due to the volatility of the security.
Bukele responded today by saying he bought up the reset and added 150 more Bitcoin to the country’s stockpile-to a total of 550 BTC. He did not specify the purchase price.
Technical problems with the official wallet
Aside from today’s market moves, the first day in El Salvador that Bitcoin is considered legal tender has also been marred by technical issues. The government’s official Bitcoin wallet, known as the “Chivo Wallet,” is currently unavailable on the official Android app store. This means that those who want to use it must turn to third-party providers with less transparent security policies.
The government recommends its citizens to use Huawei’s app gallery. However, this morning Apple released the link for Chivo Wallet on iOS.
Aquí el link: https://t.co/FS5jKSFFuC
– Nayib Bukele 🇸 🇻 (@nayibbukele) September 7, 2021
However, anyone who managed to download the wallet through a third-party provider had to realize: the app no longer works at all.
According to Bukele, the Chivo development team has decided to pause the operation of the wallet to update the servers in anticipation of the upcoming large workload. Bukele in an official statement:
“Any data you try to enter at this time will result in an error message. The system is offline, while the capacity of the servers is increased. It is a relatively simple problem, but it cannot be fixed when the system is online.“
In the meantime, users can access their Bitcoin wallet. However, you won’t be able to enjoy the $ 30 Bitcoin gift that the government is offering you. This is only available to users of the “Chivo”wallet.
Those lucky enough to receive these $ 30 worth of Bitcoin will not be able to exchange them for US dollars, according to local reports. Instead, they must use the funds in connected markets, as the Chivo wallet team told the local news portal Factum.
– Revista Factum (@RevistaFactum) September 7, 2021
Text credit: Decrypt
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