The El Salvador president Nayib Bukele clarified that he would not mandate Salvadorians to use the government-issued Bitcoin wallet.
Its name is Chivo which is the native slang for the word “cool”. It can hold both BTC and U.S. dollars.
The president stated that Chivo is not the only crypto wallet in the country. He emphasized that it operated with other existing digital wallet apps.
Last June 29, Bukele tweeted that he wanted to clear the misinformation on the government’s wallet app.
This was after the passing of El Salvador’s Bitcoin law last June 9, which will be effective on September 7.
To secure the citizen’s worry regarding their privacy, the president said that the government possesses the personal information requested from the wallet.
He emphasized that any demand to acquire personal data within the app is only for security purposes.
In addition, the Chivo wallet will not collect fees for transfers, unlike traditional cryptocurrency exchanges.
The digital wallet does not take a cut for converting Bitcoin into U.S. Dollars and vice versa.
Unlike credit cards, commissions charged to merchants or users will not be required.
Moreover, the president stated that any money that is held or obtained in BTC or USD within the Chivo wallet could be withdrawn to greenbacks cash at any time.
This will take effect once the government has finished the rollout of its 200 new physical Bitcoin ATM branches. These have been dubbed Chivo Points or Chivo ATMs.
Furthermore, Bukele clarified that the $30 government BTC handout that was announced recently on June 25 is not convertible into U.S. Dollars.
Additionally, his administration’s intent for distributing the aid is to encourage his citizens to use Bitcoin and the Chivo wallet.
Athena Bitcoin to Supply El Salvador’s Crypto ATMs
The Chicago-based U.S. company Athena Bitcoin announced it would supply El Salvador with 1,500 crypto ATMs.
The rollout will begin with small batches that will trial a few dozen machines to establish a business model.
Athena stated that it is planning to invest over $1 million to install the BTC ATMs as it targets several regions where residents receive overseas remittances.
Along with the installation of the new machines, the company will also hire staff and open offices to carry out its operations in El Salvador.
Currently, the firm operates only two cryptocurrency ATMs in the country; where the first one is located at El Zonte Beach as part of the Bitcoin Beach experiment.
This trial aims to make the town one of the world’s first crypto economies.
Meanwhile, the second machine is located in El Tunco.