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 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.
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