Bitcoin Is Now Legal Tender in El Salvador
Salvadorans will be able to interact with Bitcoin through the electronic wallet "Chivo".
Starting today, Bitcoin has become legal tender in El Salvador. This allows companies to accept this cryptocurrency as a form of payment. With this in mind, Bitso said in a statement that it will work with Silvergate Bank, a bank regulated by the U.S. federal government and incorporated in the state of California, to facilitate transactions in U.S. dollars.
The Mexican fintech announced that it will become the main provider of cryptocurrency services for the electronic wallet “Chivo”, the wallet with which Salvadorans will be able to interact with Bitcoin instantly, securely and for free.
The Chivo platform will allow users to make payments in Bitcoin or in dollars between people and companies from anywhere in the world. Users will be able to automatically convert Bitcoin transactions to dollars or choose to keep their Bitcoins and withdraw them later in cash at newly installed ATMs in the region. The application will serve as a wallet for everyday use, that is, a mobile payment system available for Android and iOS devices. The use of the wallet is completely optional, and those who do not have Salvadoran nationality will also be able to access the app.
In early June 2021, El Salvador became a global trend by becoming the first country in the world to accept Bitcoin as legal tender.
Bitso is the largest cryptocurrency platform in Latin America, with operations in Mexico, Argentina and Brazil and more than 2.75 million users. It recently surpassed the $1 billion valuation and became one of the region's recent unicorns.