El Salvador became the first country to adopt Bitcoin (BTC) as a legal tender. As a support, the government launched Chivo as its official crypto wallet for this purpose.
Despite this exciting development, the government had to return to its drawing board for optimization. That’s because the sustainability power of El Salvador Chivo wallet needs to strengthen up and measure up for extensive use cases within the country and beyond its borders.
The announcement of Bitcoin as a legal tender brought more than two million Salvadorans on board. This is evident from the number of users registered on the El Salvador Chivo wallet. Meanwhile, about three-quarters of the entire population are now wallet users. But in the first month of launching, there were technical glitches and reports of stolen or missing funds on the space.
This caused lots of doubt for this crypto adoption effort. Citizens, business owners and merchants, cried out for alternatives and demanded a sustainable optimization for the wallet. As a result, the government took a step ahead to enhance the scalability, usage and social impact of the El Salvador Chivo wallet.
El Salvador wants to give its citizens a great experience while incorporating BTC into its financial system as a legal tender. As such, they seek lasting solutions via a partnership with AlphaPoint, a US-based crypto firm. This will bring a seamless consumer interface and payment simplification to users. Users can pay utility bills and taxes via El Salvador Chivo as BTC.
Likewise, there will be an integration of the Lightning Network. This makes it possible to process many crypto transactions at a meager transaction fee instantly. With this, the wallet will be scalable and stable while processing transactions in no time for users. As a result, business owners can now leverage the wallet efficiently to receive payments and capital investments from customers and investors, respectively.
While the big news of the AlphaPoint partnership focuses on the sustainability of El Salvador Chivo, El Salvador’s government is going beyond to ensure that its citizens maximize the benefits of cryptocurrencies. Part of it is establishing BTC loans.
These loans come with very low-interest rates and give small and medium business owners access to digital money and good credit history. Likewise, this includes the unbanked. As such, this will encourage the rate of small business creations and contribute to the nation’s economic value.
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