Chivo Wallet, El Salvador’s bitcoin wallet, has released its first advertisement. The ad is the first of its kind from the government.
The commercial, which debuted on August 31, is a quick introduction to bitcoin, the Chivo wallet, and the cryptocurrency’s advantages. The wallet will be available starting September 7.
Last week, El Salvador’s President, Nayib Bukele, announced the wallet’s release date, confirming that bitcoin use would not be required. Some people were relieved by this, as they were concerned about bitcoin’s future in the country.
The advertisement also mentions the one-time $30 BTC deposit that wallet owners will receive when they first download the wallet. President Bukele announced this incentive earlier this year in an effort to entice more people to join.
Overall, El Salvador’s bitcoin interest appears to be plodding along nicely. However, the asset is not without its critics, both inside and outside the country. None of this, however, appears to be slowing down the adoption of bitcoin.
JPMorgan Chase sees obstacles in the way of the bitcoin ruling, citing illiquidity as one of them. Meanwhile, the International Monetary Fund (IMF) sees a slew of legal and macroeconomic issues.
In El Salvador, how will bitcoin fare?
On the surface, El Salvador’s adoption of bitcoin as legal tender appears to be beneficial to the country. Many people, however, are questioning the decision. The main source of concern is bitcoin’s extreme volatility.
The short-term volatility of Bitcoin can cause problems for those who choose it as a method of paying their salaries. The country’s Labour and Social Welfare Minister addressed the issue, stating that the decision would be made by the Economic Cabinet.
The adoption has sparked outrage among the country’s citizens, with many taking to the streets to demonstrate. A lawsuit was even filed by a citizen group. Volatility is also a source of concern for them.
The asset is being lauded by the President, who claims that it will bring positive changes to the country. Bukele also intends to mine BTC with volcanoes, but there hasn’t been much news on that front.
It will most likely be several months before enough data is available to assess bitcoin’s impact in El Salvador. There’s nothing to say it won’t succeed in the short term, but it’s also possible that citizens will warm up to it. Its adoption may be aided by the fact that it is optional to use.