invezz.com
Interest in Bitcoin (BTC/USD), the world’s most valuable cryptocurrency, has continued to soar in El Salvador, causing citizens to start converting their USD to BTC. This is coming barely four weeks after Bitcoin was made a legal form of payment in the country.
According to President Nayib Bukele, the Crypto wallet app Chivo has recorded over 24,000 remittances. “Today, we received 24,076 remittances, adding up to $3,069,761.05 (in one day),” Bukele confirmed.
2 new Chivo Facts:
— Nayib Bukele 🇸🇻 (@nayibbukele) October 16, 2021
1. People are inserting way more USD (to buy #BTC) than what they are withdrawing from the Chivo ATMs (any media outlet can independently confirm this by visiting the ATMs).
2. Today, we received 24,076 remittances, adding up to $3,069,761.05 (in one day).
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Also, the President admitted that more El Salvadorans are converting their dollars into Bitcoin, preferring such conversions than withdrawing from their wallets.
He further asked independent media to carry out their research to confirm the report, knowing that some critics may disagree with his claims.
El Salvadorians show more interest in Bitcoin
El Salvadorian Bitcoin adoption journey has not been smooth-sailing. Bukele received severe criticisms on the issue, with many arguing that the decision could cripple the country’s already thin economy.
Renowned economics went as far as calling a move a “very stupid” one, blasting President Bukele for promoting such policy.
But Bukele proceeded with the plan as it plans to make Bitcoin a legal tender in El Salvador.
The use of Bitcoin opens up more opportunities
However, with increased interest in Bitcoin, it’s a clear indication that the majority of El Salvadorians prefer to keep their funds as Bitcoin.
Presently, the population of El Salvadorians using the Chivo crypto wallet is higher than the population of those with bank accounts, which has promoted financial inclusion. It seems the plan President Bukele has before promoting Bitcoin is gradually coming into effect.
Furthermore, Bitcoin’s increased used in the country has opened up more opportunities for residents. Some of them are gaining more subsidies when they pay for certain services using Bitcoin.
The new law is also beneficial to foreign investors, as many of them do not pay capital gain taxes from their Bitcoin investments.