News Report
May 06, 2022

Researchers: El Salvador’s crypto wallet is junk

El Salvador’s national Bitcoin wallet, call Chivo, looks like it’s having a bit of trouble getting off the ground. According to the National Bureau of Economic Research in Cambridge, Massachusetts, of the 1,800 households surveyed very few are still using the wallet and, in areas where crypto tourism is highest, many users have abandoned the Chivo for other wallets.

The researchers wrote their findings in a paper entitled “Are Cryptocurrencies Currencies? Bitcoin as Legal Tender in El Salvador.”

“There is no experiment where a currency was introduced with such strong incentives and still failed,” said Fernando Álvarez, study author and economist at the University of Chicago to RestOfWorld.

The Chivo first launched in September 2021 and gave each user about $30 in cryptocurrency per download. Most users activated their wallets and extracted the currency said the researchers. Some 20% of respondents said they are still using the tool to reduce their dependence on cash.

Further, misstatements by the government have made users thing the Chivo is insecure. For example, an article in El Faro stated that instead of dollars being held in the wallet Chivo was actually holding tokens. While it’s obvious to an educated blockchain user that there is no way to hold “dollars” in a crypto wallet, this was not clear to the vast majority of users.

“Don’t even talk to me about Chivo,” said Carolina Reyes to RestOfWorld. Reyes runs a snack shop. “It’s not secure, so I’m not going near it.”

Reyes was one of over a thousand people who downloaded Chivo for the bonus and found their identities had been stolen and their wallet wiped out.

Photo by Esaú González on Unsplash

Read related posts:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

John Biggs is an entrepreneur, consultant, writer, and maker. He spent fifteen years as an editor for Gizmodo, CrunchGear, and TechCrunch and has a deep background in hardware startups, 3D printing, and blockchain. His work has appeared in Men’s Health, Wired, and the New York Times. He has written eight books including the best book on blogging, Bloggers Boot Camp, and a book about the most expensive timepiece ever made, Marie Antoinette’s Watch. He lives in Brooklyn, New York.

More articles
John Biggs
John Biggs

John Biggs is an entrepreneur, consultant, writer, and maker. He spent fifteen years as an editor for Gizmodo, CrunchGear, and TechCrunch and has a deep background in hardware startups, 3D printing, and blockchain. His work has appeared in Men’s Health, Wired, and the New York Times. He has written eight books including the best book on blogging, Bloggers Boot Camp, and a book about the most expensive timepiece ever made, Marie Antoinette’s Watch. He lives in Brooklyn, New York.

Hot Stories
Join Our Newsletter.
Latest News

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Join Our Innovative Tech Community
Read More
Read more
zkLink Announces Launch Of ZKL On Major Crypto Exchanges, Opens Claiming Window For Novadrop
Markets News Report Technology
zkLink Announces Launch Of ZKL On Major Crypto Exchanges, Opens Claiming Window For Novadrop
July 22, 2024
Bitfinex Alpha Analysis Highlights Bullish Signals Supporting Bitcoin’s Upward Momentum
Markets News Report Technology
Bitfinex Alpha Analysis Highlights Bullish Signals Supporting Bitcoin’s Upward Momentum
July 22, 2024
Bitlayer Launches Its Racer Center, Enabling Users To Claim Gems And Explore Bitlayer Points
News Report Technology
Bitlayer Launches Its Racer Center, Enabling Users To Claim Gems And Explore Bitlayer Points
July 22, 2024
Self Chain To Reward Early Supporters With 326,000 SLF Token Airdrop
News Report Technology
Self Chain To Reward Early Supporters With 326,000 SLF Token Airdrop
July 22, 2024