more than a million people already operate with bitcoins in commercial premises

El Salvador reached in just over a week 1.1 million users of the Chivo wallet with which they can make bitcoin transactions, the president reported on Friday Here is a preview.

“1.1 million Salvadorans already use @chivowallet (and we have not yet activated the 65% of phone models), “the president said on Twitter.

The “Chivo Wallet” is an electronic wallet that Salvadorans inside and outside the country can download to their mobile phones to carry out transactions in this cryptocurrency. Every person who downloads it receives the equivalent of $ 30 in bitcoin.

On September 7, El Salvador became the first country to use bitcoin as legal tender, hoping to reclaim its stagnant economy, dollarized two decades ago.

Salvadorans in the United States can also transact in nine cities where ATMs have been installed.

“It seems that we will be able to bank more people in 1 month than they did with the nationalizations and privatizations of the traditional bank in 40 years“Bukele, who is very popular, pointed out.

On Wednesday, participants in a massive protest in San Salvador expressed their rejection of bitcoin as a “volatile” cryptocurrency.

According to Salvadoran law, all companies must have technology to accept bitcoin transactions. However, the business owner can choose between keeping the cryptocurrency or activating the option for the final income to fall in dollars.

The government hopes that the use of bitcoin will help capture more than 4$ 00 million in commissions for remittances that Salvadorans send from abroad through financial entities and which are equivalent to 22% of GDP.

Some 3 million Salvadorans live outside their territory, including 2.5 million in the United States.

The IMF has it in its sights

The International Monetary Fund (IMF) hopes to conclude “in the coming months” its annual review of the Salvadoran economy, which will serve as the basis for a possible future program with the Central American country, multilateral organization spokesman Gerry Rice said on Thursday.

“We are continuing discussions on Article IV,” as the IMF’s regular consultations on member countries’ economies are known, Rice said of talks with the Bukele government.

“We hope that they will be successful in the coming period, in the months to come, and the potential of an IMF program for El Salvador is also being discussed,” he added at a conference. Press.

Rice said the ongoing talks “Will serve as underlying policy measures” continue discussions on a possible agreement with the IMF.

“The objectives of our program would be to promote inclusive growth, ensure the financial stability and fiscal sustainability“, he clarified.

And he added that “discussions on economic governance, in particular tax transparency and anti-corruption measures, will remain essential in Article IV and subsequent discussions.”

The government of El Salvador said at the end of July that there was “a high probability of reaching an agreement with the IMF before September”. At the time, he said he was looking for an IMF Extended Service Program (SAF) for about $ 1.3 billion.

Rice did not comment on the establishment of bitcoin as legal tender in El Salvador on September 7, but referred to her previous statements on the matter.

In June, the IMF warned that the adoption of this cryptocurrency could create risks and regulatory challenges. Rice said at the time that the Fund was “closely following” progress on this issue and that he would continue his consultations with the authorities.