San Salvador: Salvadoran President Nayib Bukele stepped down on Wednesday to manage the horrific roll-out of a payments app that is the basis for the country’s adoption of bitcoin as legal tender, and urged users to post any messages on his Twitter feed. Also called to report the problem.
Adopting the same language as IT departments in offices around the world, Bukele asked users to close and restart the app when a “currently under maintenance” error screen appears.
The historical adoption of bitcoin as legal tender by a Central American country has been beset by problems that have contributed to the decline in the value of the digital currency globally https://www.reuters.com/technology/ bitcoin-bruised-after-chaotic debut-legal-tender-el-salvador-2021-09-08.
Bitcoin’s base continued to decline on Wednesday, closing down 1.7% at $46,000.
“Any financial innovation of this scale is going to come with teething problems. However, if we’ve learned anything from looking at the markets over the past year, it’s that bitcoin maximalists will try to push the digital currency as fast as it has fallen,” said the chief executive of the Scandinavian-owned fintech. said officer Michael Kammerman.Skilling company.
Some market watchers see a bullish future, with a new cryptocurrency research team from Standard Chartered predicting bitcoin will reach $100,000 https://www.reuters.com/technology/standard-chartered-sees -bitcoin-hitting-100000-by-early-Next Year-2021-09-08 By the beginning of next year and longer term could be as high as $175,000.
Bukele has sent a stream of Twitter messages over the past 36 hours instructing users to download the government-backed Chivo app that promises commission-free transactions and which his administration hopes will be adopted by unbanked people. Will go
Overnight the president said that the app, a digital wallet, was being disconnected for a second time to “improve the user experience and problems encountered during the day”.
“We hope tomorrow will be much better,” he wrote in a tweet.
Several users replied in their comments section to report ongoing installation issues.
The head of El Salvador’s central bank, Douglas Rodriguez, said during an event in the Honduran capital Tegucigalpa that the “eyes of the world” were on his country and that bitcoin adoption was a process that took time to “mature”.
Addressing concerns the digital currency could encourage illegal activity, Rodriguez said the bank’s set rules for using bitcoin were designed to meet money laundering standards and were well received by international authorities. it was done.
El Salvador’s bitcoin law states that the market will establish an exchange rate between the cryptocurrency and the US dollar, the country’s other legal tender. It states that all prices can be expressed in bitcoin and tax contributions can be paid in the digital currency, while currency transactions in bitcoin are not subject to capital gains taxes.
fine tuning
Despite technical hurdles, the app’s rollout caused some waves in El Salvador, partly due to a government handout of $30 in bitcoin to every local user who signs up, and despite polls showing that many people are interested in bitcoin. Beware of volatility.
In the El Salvador version of Apple’s App Store, Chivo was the No. 1 downloaded financial app on Wednesday.
Bukele previously said that initially only certain phone models will have access to Alphabet’s app on Google Play to avoid the system-demolishing rush.
On Wednesday afternoon, he wrote on Twitter that Google Play was available for Alcatel smartphones and that more models would be added, although at the same time it was important not to “saturate the servers” with too many registrations.
“We are still working out the small details,” he said.
Reuters could not immediately determine how many times the app was downloaded.
JPMorgan Chase said in a note on Wednesday that some technical glitches are to be expected.
“These technical issues should not come as a surprise, as the country had only three months to prepare for this grand experiment,” the bank said. “In contrast, China has been preparing/testing its digital yuan for years and has yet to officially launch it.”
Global retailers operating in El Salvador were accepting bitcoin at some stores, including McDonald’s Corp. and Starbucks Corp., as well as several local outlets.
Bukele, 40, who is doing well in opinion polls but has been accused of destroying democracy 2021-07-01, has used social media heavily to govern and engage with Salvadorans .
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