El Salvador’s Official Crypto Wallet Chivo Processed $52 Million in Remittances So Far in 2022 3b3110 Technology News

As per Douglas Rodríguez, the president of the El Salvador central bank, the Chivo has processed more transactions this year as compared to 2021 u21h

By Radhika Parashar | Updated: 7 July 2022 15:04 IST

El Salvador’s Official Crypto Wallet Chivo Processed $52 Million in Remittances So Far in 2022

Photo Credit: Twitter/ PresidenciaSV 3p3v69

The Chivo wallet service is governed by El Salvador’s pro-crypto government

Highlights

Chivo uses the Bitcoin layer-2 payment protocol Lightning Network
Chivo has processed more transactions this year as compared to 2021
Chivo was launched last year

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El Salvador, a small country located in central America, has a lot of its citizens working abroad and the money that they send back home to their family , adds to the country's economy. So far in 2022, El Salvador's official Bitcoin wallet, called Chivo, processed $52 million (roughly Rs. 410 crore) in these remittances. Launched in September last year, the Chivo wallet service is governed by El Salvador's pro-crypto government under President Nayib Bukele.

As per Douglas Rodríguez, the president of the El Salvador central bank, the Chivo wallet has processed more transactions this year as compared to 2021.

In the first five months of this year, the remittance deposit on Chivo rose by 3.9 percent, amounting to $118 million (roughly Rs. 933 crore), a report by CoinTelegraph said.

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Chivo does not deduct any commission on facilitating transactions from BTC to US dollars.

While promoting the wallet for adoption among the masses, Bukele had claimed that Salvadorans will be able to save $400 million (roughly Rs. 3,164 crore) in annual commissions that are deducted in conventional remittance and payment service providers in the country.

The application also makes use of the Bitcoin layer-2 payment protocol Lightning Network, which provides low-fee BTC transactions.

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American cryptocurrency exchange software firm AlphaPoint has been onboarded by Chivo for the scaling and stability of BTC to US dollar transactions.

El Salvador Bitcoin in the backdrop of not having its own currency. In 2011, the central American country had adopted US dollars as their mode of payments.

While El Salvador aims to become an example of growth in legal crypto space, several other countries are against legalising trading and transacting in cryptocurrencies, because these digital assets are not yet regulated by any international bank.

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Further reading: Chivo Wallet

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More