One of the highlights of this year was El Salvador’s recognition of Bitcoin as a legal currency. Thanks to Chivo wallets, citizens can easily make Bitcoin payments at businesses in the country. Although the wallet application faced serious problems in the first weeks, these problems were removed after a short time. But the citizens of El Salvador are starting to revolt, will the Bitcoin experiment fail?
Citizens of El Salvador Revolted!
Luis Guardado made a direct call to El Salvador’s President Nayib Bukele, saying, “There is no technical support and there are only unnecessary calls, where is my money”. Some of the money in El Salvador’s government-issued Chivo wallets is reportedly missing, many Salvadorans have shared on social media.
In a Twitter thread launched by a user on December 16, at least 50 people in the country reported losses totaling more than $96,000 in December after the government set up their Bitcoin (BTC) wallet. “There is a security flow in the wallet where money and transactions are lost,” Luis Guardado said in a direct appeal to President Nayib Bukele.
Is Bitcoin (BTC) Experiment Over?
Bukele said in October that 3 million Salvadorans use Chivo wallets, meaning roughly half of the country’s 6.5 million population have adapted to Bitcoin. Since El Salvador’s Bitcoin Law was first proposed in June, many in the country have opposed the decision for a variety of reasons, including the volatility of cryptocurrencies and claiming they are unreliable as an investment for pension funds.
Protesters marched through the capital, San Salvador, before the law came into effect on September 7, and subsequent protests saw some people manage to loot and burn Chivo kiosks.
The president of El Salvador has made frequent social media posts to promote the adoption of BTC and related projects, including crypto-mining geothermal energy from the country’s volcanoes and building a Bitcoin City, which was initially funded by $1 billion in BTC bonds. He also heavily uses his Twitter account to announce his Bitcoin purchases to the world. El Salvador has 1,391 Bitcoins as of today.