TL;DR Breakdown
- After the recognition of Bitcoin as legal tender in El Salvador, Nayib Bukele was surrounded with doubts.
- It was on the 24th of June that the President cleared off misconceptions regarding the law.
- On 24th, the wallet called Chivo wallet was introduced to the world’s first country that legalized Bitcoin.
El Salvadorian President Nayib Bukele has made a revolutionary decision by accepting BTC as a legal tender, and now, it has been integrated into the country’s financial architecture. The legislature was introduced and passed recently by Congress as well. On 24th June, all the doubts of citizens and the world regarding the law were removed by the country’s President.
He explained the functioning of the law and also introduced the Chivo Wallet to the country. This app generated a huge amount of skepticism as people questioned the app’s requirements. In order to use this application, people were required to fill up personal information, and this means that the government will have the entire data of the transactions that would be taking place.
President Nayib Bukele clears the air around the Chivo Wallet application
The Chivo Wallet is a wallet introduced by the El Salvadorian government and is not the only wallet used in the country. People can use other wallets too. The wallet is fully compatible with devices and will co-operate with other hardware or online wallets. The wallet gained criticism mainly for asking details that are personal to each and every person during transactions.
This made people feel that they don’t have the privacy that they should have. The whole concept of blockchain transactions is privacy, and that the individual will be their own bank. This application has imposed rules that violate privacy, as most of the users of the Chivo Wallet felt. But, the President gave a message to the entire public, clearing the air.
According to President Bukele, the wallet needs only the information that is asked during the account setup for KYC purposes and other security reasons. The other details asked during the transactions are for the benefit of the people involved in the transaction. If the people lose their funds during the transfer then, they can be recovered. There won’t be any fee for any kind of withdrawal, deposit, conversion, or swapping. It is all free of cost.
