The government of El Salvador and US financial technology provider, AlphaPoint, have joined forces to improve the Chivo wallet technology. The feature allows access to bitcoin for millions of Salvadorans.
Chivo wallet with an improved version
Last year, El Salvador thrust its name into the spotlight after becoming the first state to accept bitcoin as legal tender within its borders. The authorities also introduced the Chivo wallet, a crypto wallet where locals can facilitate BTC transactions.
At first sight, he was received with great enthusiasm among the locals. In late September, President Nayib Bukele announced that the wallet had amassed 2.1 million users or about 30% of the Salvadoran population.
However, the mass adoption led to some problems, such as slow transactions, blocked accounts, unauthorized charges, and other technical glitches.
To solve these problems, the government has partnered with AlphaPoint, a New York City-based software company that supports crypto projects. Specifically, the authorities promised to change the frontend and backend technology provider of their Chivo wallet with the help of their new partner.
Speaking on the matter was Igor Telyatnikov, co-founder and CEO of AlphaPoint:
“No one else has attempted to execute a project of this nature. We at AlphaPoint are honored to participate in the process and provide the reliable and scalable solutions necessary for this effort. Currently, the Chivo Wallet app supports millions of Salvadorans, many of whom are accessing financial services for the first time.”
The update to El Salvador’s crypto wallet came a few days after the International Monetary Fund (IMF) urged the government of the Latin American country to remove bitcoin’s legal tender status. He opined that such legislation represents a “great risk” for the economy and could create “contingent liabilities.”
Shortly after, El Salvador’s finance minister, Alejandro Zelaya, responded to the criticism by saying that “no international body is going to force us to do anything, nothing at all.”
BTC Initiatives from El Salvador
In addition to adopting the main cryptocurrency as an official payment method, Salvadoran authorities have also bought bitcoin on a macroeconomic level. The latest purchase came in late January when the nation amassed 410 BTC worth $15 million (at the time of the deal). Currently, the state has 1,801 BTC, equivalent to almost $70 million (calculated at today’s prices).
Additionally, El Salvador engaged bitcoin in some wacky endeavors. In October last year, the government said it would use some of its accumulated earnings from bitcoin purchases (totaling nearly $4 million at the time) to create a massive pet hospital.
A month later, the authorities promised to use part of the BTC proceeds to build 20 schools. Interestingly, that would educate locals about the leading digital asset and its underlying blockchain technology.
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This post El Salvador to Fix Chivo Wallet Problems by Partnering with AlphaPoint
was published first on https://cryptopotato.com/el-salvador-to-fix-chivo-wallets-issues-by-partnering-with-alphapoint/