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First reactions on El Salvador’s Bitcoin

September second week becomes historical for both El Salvador and Bitcoin. El Salvador raises its flag on world digital currency. Bitcoin is now officially recognized as legal tender throughout the country of El Salvador, marking a world first. Unfortunately, the price of Bitcoin dropped by $10K.If everything went out well, it might be the beginning of a new currency era. World nations who are in dilemma to adopt Bitcoin as legal tender are very much interested to watch the happenings in Central American nations after September 07th. The reason for their excitement is that it was particularly volatile. The aim of adoption of bitcoin and other cryptos has been one of the main goals that the crypto industry set.

Problems with Chivo App

Even after the fourth day of the adoption, El Salvador people faced the problems of downloading the government’s digital bitcoin wallet Chivo. This is a huge setback for the people who are trying to sign up for the app promoted by President Nayib Bukele. It creates problems while accessing the wallet, withdrawing the money from ATMs and in verifying the customer data.


People fear of volatility

People are still sending or receiving dollars because of mistrust of bitcoin. Some have expressed fear of losing money due to high volatility of cryptocurrency. Some were in strong belief that bitcoin is meant for money-laundering activities. Government showed interest in promoting the digital coin but was not involved to dispel fears among them.

Foreign Investors won’t pay tax on profits

The El Salvador government will exempt foreign investors from taxes on profits on bitcoin. There will be no tax if a person has assets in bitcoin and earns huge profits on them. The government experiment will save millions of dollars off commissions on remittances from other nations. The country had high remittances mainly received from the United States.


El Salvador’s largest bank Bancoagrícola will now be able to pay down their loans and credit card bills in bitcoin. Bank customers can also use the cryptocurrency to purchase goods and services through the bank's payment gateway. McDonald’s starts accepting bitcoin but only in El Salvador. Following the El Salvador initiative, the United States of America has conducted a survey to ascertain whether people support or oppose bitcoin as legal tender. 61% of the adults have not opposed bitcoin as legal tender. Ukraine has legalized bitcoin and other crypto. One can buy, sell and hold bitcoin and other crypto assets in the country. 
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