Fintech Bitso, a cryptocurrency platform, said on Tuesday it will be the core service provider for Chivo, the bitcoin digital wallet launched in El Salvador as it becomes the first country in the

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‍The Central American country becomes the first country in the world to have an official cryptocurrency and its own digital wallet. The deal was signed on Monday, February 19 after a meeting of government officials from El Salvador and representatives from Bitso and Chivosend. We provide our users with the safest, most innovative and accessible digital-money services in Mexico and Latin America ,” said Gonzalo LENDERSCHENDLER, Bitso CEO. “Having been one of the first operators in the region to provide services for customers in virtual currency and blockchain technology, we are pleased to support this initiative as part of our mission to drive adoption and innovation of these technologies.”

What is Chivo?

Chivo has been officially named the first cryptocurrency issued and controlled by a Central American government. It will be used within Chivosend, the Salvadoran government’s official digital wallet. Chivosend works as a payment system within the Salvadoran e-commerce market. It’s intended to serve as an alternative to traditional banking methods for the majority of Salvadorans who have no access to financial institutions. Chivosend will also use the cryptocurrency issued by the government as a means of payment. The goal of this move is to eliminate the need for cash payments between Salvadorans who are forced to transact with one another in cash due to the lack of access to financial institutions.

Meaning of the name “Chivos”

Chivos is the word for goats in the Salvadoran dialect. The word is also used to describe people who are nice, humble, helpful and respectful. The naming of the cryptocurrency with the term “Chivos” is consistent with the Salvadoran government’s desire to create and support a collaborative, inclusive and decentralized society.

Why El Salvador chose Bitcoin?

Bitcoin has been considered by many as the universal currency that exists everywhere and nowhere at the same time. It is decentralized and there is no central authority that controls it. This makes it the perfect currency for countries that have an unstable economy and those that face difficulties in accessing the international financial system. Bitcoin can be used to transact between people and businesses in any country, even those with limited access to financial institutions. It is also a robust digital asset with a history of being secure, reliable and censorship-resistant.

How does it work?

Users can open an account by providing their name and mobile number. Once the account is verified, the user has instant access to the digital wallet, where they can store, send and receive Chivo funds. The value of the Chivo can fluctuate depending on the price of Bitcoin. The funds can be withdrawn from ATMs or transferred to other users of the system. Users can also top up their balance using Bitcoin or by depositing cash at banks. Once the wallet is set up, it can be used to make purchases on both web and mobile applications. This new digital wallet allows people to send money to other people in El Salvador at a fraction of the cost they normally pay when they use the traditional wiring services.

Limitations of this digital wallet?

Bitcoin is a volatile asset and it can become less valuable in a short period of time. This can pose a significant risk to individuals with low savings or who use it as a means of daily payment.

Conclusion

Central America has seen significant growth in its economy, yet millions of people there do not have the necessary financial services to take advantage of these opportunities. The use of a decentralized cryptocurrency can help these populations gain secure and reliable access to financial services and take part in the global economy. Fintech Bitso, a cryptocurrency platform, said on Tuesday it will be the core service provider for Chivo, the bitcoin digital wallet launched in El Salvador as it becomes the first country in the