El Salvador started BTC campaign in their country

[Woodie]

For a head of state to advocate for crypto says alot...it could me the population is of a young generation so technology is not an issue which includes bitcoin, this could also be the opening of its doors for any crypto business to everyone of us,  perhaps miners too

This still remains one of the biggest positive crypto news we have received in a while and looking forward for more 😀.

[Samthehero]

Cool! So, the fees killed my btc, and all I got was this cup of coffee meme, has it started trending yet? Has it taken off on tiktok yet?

[uneng]

Best faucet so far, unfortunatelly only disponible for salvadorans citizens.
Let's see how people in general will react towards this incentive by the government. I think they are just going to cashout the btc into fiat and add the sum to their traditional bank accounts, what is pointless after all. A good campaign would be to incentive entrepreneurs to pay employees in btc and their businesses accept payments in btc also, especially those who are focused on internet niche, like shopping sites, for an example.

I really fear bitcoin adoption isn't going to happen just because the government is going to distribute 30$ to people who have never heard of this before.

[blockman]

This is what I'm exactly reading right now from the article that can be found on coinmarketcap. (https://coinmarketcap.com/alexandria/article/30-reward-for-every-el-salvador-adult-who-downloads-government-crypto-wallet)
It is for everyone that will download their country's wallet and there's an airdrop for everyone! and the airdrop is in BTC. $30 is already a good amount as free money and what if those folks understand the power of holding. This is really a great initiative by the El Salvador's government and what if Bulgaria does the same as they're one of the countries known as one of the biggest holders.

[posi]

El Savador President just write the county name in book of history, to be the first country to host Bitcoin airdrop and thats if they indeed do the $30 worth of Bitcoin giveaway when it September. I hope this wont hurt the country pocket though.
However, this will only create surge in price of the market for sometime cause we seem to be heading to the market correction stage.

[verita1]

I agree OP. Chivo Wallet will be available in September when El Salvador's Bitcoin law takes effect. The Bitcoin airdrop is like a form of Marketing campaign to promote the wallet and for Salvadoran citizens to become familiar with the app. It is incredible how President Nayib Bukele has found things to think about bitcoin for his country.

Take a look at this Tweet, he created this tweet on July 7, 2017 mentioning the Central Bank of El Salvador

Well yes, it is official, we will use Bitcoin 😎 cc. @bcr_sv

Pues si, es oficial, usaremos Bitcoin 😎 cc. @bcr_sv

https://twitter.com/nayibbukele/status/1408264485194850304?s=19

If you want to know any update of Chivo Wallet. Here you have its Twitter account

https://twitter.com/chivowallet?s=09

[electronicash]

I agree OP. Chivo Wallet will be available in September when El Salvador's Bitcoin law takes effect. The Bitcoin airdrop is like a form of Marketing campaign to promote the wallet and for Salvadoran citizens to become familiar with the app. It is incredible how President Nayib Bukele has found things to think about bitcoin for his country.

Take a look at this Tweet, he created this tweet on July 7, 2017 mentioning the Central Bank of El Salvador

Well yes, it is official, we will use Bitcoin 😎 cc. @bcr_sv

Pues si, es oficial, usaremos Bitcoin 😎 cc. @bcr_sv

https://twitter.com/nayibbukele/status/1408264485194850304?s=19

If you want to know any update of Chivo Wallet. Here you have its Twitter account

https://twitter.com/chivowallet?s=09

it's not yet happening because the wallet will only be available in September which I guess the airdrop is nothing but just an announcement?

according to a coindesk podcast, the airdrop isn't just for the Chivo government back wallet but for all wallets. strike wallet is very popular there so i guess this is easier for the government to promote the use of BTC if they don't ask all to download Chivo.

[Renampun]

This is very extraordinary news, at a time when the price of bitcoin is falling, and the Chinese state is against bitcoin mining, El Salvador has come up with a new step, to introduce bitcoin to its people, this is the first step, and can be said to be a profitable project in the future. ..

now El Salvador has become a bigger country than china...

supporting Bitcoin means supporting the future, imagine how many million people will prosper from Bitcoin, Bitcoin has changed the future of millions of El Salvadorans.

[caffinated]

Regardless of the catch which the government will ask KYC through that Chivo wallet sponsored by the government, people will take the BTC specially now that its free. There really is an intention, it could be for the re-election? 😁

It's $30. No one will give you that money while watching youtube the whole day.

They will probably KYC to give the 30 bucks otherwise the same guy can re queue for the money. The free money will help accelerate the adoption of cryptocurrencies and give the kick the users need to start using it.
I really do not see a problem with what el salvador is doing, in fact it is great news for the crypto community...
IMF basically asked them to cancel their pro btc stance after they made it legal and they come out with this news...
It costs el salvador real money to distribute btc, they will have to give up cold hard cash for this.

They will get alota benefits though... After the users are kyced they can use the system to distribute money in the future as well, saving them alot of banking fees.
There will be heavy risks that will follow, hopefully they are prepared...
Id say everyone needs to support el salvador's steps instead of looking at the glass half full, i am eagerly waiting for their mining operations to start so i can do something there!

[LoyceV]

I see several problems with this:

• It's not "giving away" money when it comes from taxes. People basically get a fraction of their own money back.
• They use $30 instead of 0.0009551 BTC or 95510 sat
• Citizens are required to install a wallet provided by the government
• Apart from the privacy concerns, it wouldn't surprise me if there are security problems in their newly created wallet app

But what really worries me is this:

The catch is that the 30$ worth of bitcoin is given for those that download Chivo, an app provided by the Government to manage crypto (from September 2021 onwards). Fine it’s a way to kick-start things into motion, but I’d rather it be a wallet of free choice.

What if they actually plan to send the derivatives instead of actual bitcoin, and that's why they are making this Chivo app mandatory in order for people to get BTC? I mean, if they really have no ill intentions, they would just let people get their BTC in any wallet of their choice.

I expect some form of fractional reserve Bitcoin.

I can't find much about the wallet:

The app will be available on both Android and iOS. The wallet will also be compatible with other digital wallets on the market. It will be released later this year, with the bitcoin law coming into effect on Sept. 7.

Considering how high on-chain fees can get, I don't think they'll use on-chain transactions. The next best thing would be using the Bitcoin Lightning Network. But I kinda expect they'll create their own centrally controlled "Bitcoin" that can only be used within their government approved app. So you can send it to other people in El Salvador, but you can't send it to any other wallet. That means you can't send it abroad, and it also means the government doesn't have to buy thousands of Bitcoins to distribute to their citizens. If they create a special permission to withdraw on-chain to another wallet, they'll only need a much smaller amount for those on-chain settlements.

The more I read about this, the more I think they only use the name Bitcoin, but not actual Bitcoins.

[taufik123]

One example of the adoption of Bitcoin that is actually carried out in a country with the full support of the head of government. Elsavador will not only adopt but will develop the potential possessed by bitcoin. Starting a campaign by giving away $30 in Bitcoin will certainly make the Elsavador Community learn how to use Bitcoin and learn what its advantages and disadvantages are.
this is one form of example to lift the economy in the country with a more modern platform.

[nikrobi]

El Savador pioneering BTC legalization will be a test for other countries to figure out how to move the economy so that it is compatible with the utilities that cryptocurrency offers!
Wait and see!

We know that who takes the first attitude has a very very big chance to be among the top world leaderships that will get in to History!

This action managed by this predictor guy isn't a simple political movement but a drastic modification in its national economy and an alert in a form of hint to the other countries which now have alredy becoming out of the game.

From now on the nation that does not choose to change will creat a gap in its economic resume. The time is very important at this moment cause it'll be directly proportional to the future benefits for a nation!

Fantastic "test"! Fantastic experience with a 99.9% positive result, safe and sound!

[sapnu]

This will surely make a huge impact on how the world view bitcoin and other cryptocurrencies. It will make a good impression if ever El Salvador's decision caused them to improve their economy. Nevertheless, if ever it flops, surely bitcoin will have a bad reputation and will cause a sudden fall in bitcoin's value. Now that it has been done within a nation and this time it's for real, let us hope that everything would work well because it will help us progress more on making bitcoin as a official currency in the making.

[Rikafip]

It's not "giving away" money when it comes from taxes. People basically get a fraction of their own money back.

Haha yeah, that's common misconception about government giving something for "free".

The more I read about this, the more I think they only use the name Bitcoin, but not actual Bitcoins.

Pretty much this. At first this news sounds great, but when you dig deeper, it more looks like a publicity stunt than something legit and with honest intentions. There are still many questions unanswered but once that wallet is out we will know what's actually going on.

[CryptocurencyKing]

The catch is that the 30$ worth of bitcoin is given for those that download Chivo, an app provided by the Government to manage crypto (from September 2021 onwards). Fine it’s a way to kick-start things into motion, but I’d rather it be a wallet of free choice.

Skimming through the below link with information on Chivo, it states that:
-   Users need to register with their Id and phone number.
-   They’ll also need to perform a facial recognition or to complete a phone questionnaire from a given call center.
   
Seems like starting with a big brother wallet ...

See (in Spanish):
https://elsalvadorgram.com/2021/06/asi-es-chivo-la-wallet-oficial-del-gobierno-para-transacciones-en-bitcoin/
https://twitter.com/chivowallet (no content here yet really).

From rhe information provided here of the need for a KYC and then, a government managed wallet in this case,

In the Open;
It is a deliberate effort but the government to ensure the giveaway isn't over utilised or should i say, the citizens especially those in charge of the giveaway doesn't cheat the system. It would help them keep a close check on the fact that, each citizen gets his or her quota once and for all.

In the Hidden;
It could be another way to ensuring that the bitcoin owned by any citizen that uses the Chivo wallet is taxed. Either receiving or sending.
Again, it could be a campaign  in progress for a re-election into office. Politics never ceases.

[LoyceV]

At first this news sounds great, but when you dig deeper, it more looks like a publicity stunt than something legit and with honest intentions.

Fractional Bitcoin Now combine that with this:

El Salvador has one of the highest crime rates in Latin America. Violence between gangs is common and targets are usually rival gang members or the military and police.

And for the Bitcoin whales who thought this will be a good destination to spend their Bitcoins or even move to:

it’s safer to withdraw money from ATMs in shopping centres or change money in hotels or banks; don’t withdraw too much money at one time; foreigners have been attacked after withdrawing money from ATMs; don’t use ATMs at night or in isolated or badly lit areas

And a last bit of advice:

if you’re attacked, don’t resist

I'll stay away for now.

On second thought: They may actually get away with fractional Bitcoin. If the government tells them it has value, it could just work within the country. That's how we went from gold to paper to digits on a screen over the centuries, and it could just work here too. It won't be Bitcoin, but they can still accept it as a payment.

[CryptoStar19]

I am surprised that the Salvadoran government is forcing adoption in the way that they are (all merchants have to accept bitcoin as well as the USD). There will be hurdles of forcing this kind of adoption but it will bring BTC adoption to millions of people who wouldn't otherwise get into the space.

[Gamerholic]

Well, that a big social experiment over the whole country has begun and it is unclear how it will end. I think we should be patient and stock up on popcorn, as the spectacle and events will be (I'm sure) very interesting. It is especially interesting what will happen if this whole venture turns out to be effective and generates a wave of similar decisions in Latin America - what will happen then to the dollars and the system of finance that exists? I am sure this will be the beginning of a large-scale crisis.

[DdmrDdmr]

Bukele has been Tweeting on some misinformation regarding the bitcoin law, so far having stated the following comments (which I’ve translated from here: https://twitter.com/nayibbukele/status/1409584377915269120):

1. The Government wallet is only one of many that can be used.

2. @chivowallet will be totally compatible with other wallets.

3. Personal data required by the wallet (Chivo I presume) are already in the Government’s possession. The DUI (Id card) has the photo, complete name, age, address, telephone, height, fingerprints, etc.

4. The use of @chivowallet will have no cost, no commissions will apply when sending or receiving remittances, nor when converting bitcoin to dollar or vice-versa.

Businesses (shops and such) will not be charged a commission, as credit cards do.

5. The money that one has or receives (in dollars or bitcoins) in the @chivowallet may be withdrawn in cash (in dollars) whenever one wishes to.

This may be done in the physical Chivo branches, or using Chivo ATMs.

This will not incur in any commission.

6. There will be over 200 Chivo places (counting both ATMs and branches) in historical centres and commercial centres, where one will be able to withdraw cash from the @chivowallet.

One will also be able to make deposits there, purchase #bitcoin, and use other services.
All this without any commission.

7. Conversion between dollars and #bitcoin, or from #bitcoin to dollars is free, and can be done at any time from the @chivowallet, at market price at that point in time.

This is also without any commission.

It is not mandatory to make any conversion if one does not wish to do so.

8. The only #bitcoins that cannot be converted are the 30$ in bitcoin that the government will give out.
These may only be spent.

Why?
Because the purpose of these 30$ in #bitcoin is not to give away money, but rather to incentivize the use of bitcoin and the @chivowallet.

9. Once these 30$ in #bitcoin are spent, they’ll enter the normal system and from there on may be kept in #bitcoin, converted to dollars, and/or be withdrawn from any Chivo point (of interaction), which will be distributed all over our country.

The above does still requires the use of Chivo in order to receive the 30$ in bitcoin, but some clarifications were made to debunk some wrong information that stated to circulate in the country. Clarification number 8 is an interesting one , plus those that verse and reiterate on the lack of some comissions, which we'd still need to see alongside the countervalues being used during conversions and cashouts.

Edit: Pretty long video (1h in Spanish) on the matter: https://www.youtube.com/watch?v=vYXTuWcltBs

[LoyceV]

1. The Government wallet is only one of many that can be used.
2. @chivowallet will be totally compatible with other wallets.

It sounded really good until I reached point 8:

8. The only #bitcoins that cannot be converted are the 30$ in bitcoin that the government will give out.
These may only be spent.

But if you can send it to another wallet, isn't that the same as spending it?

Point 8 makes it feel like it's some sort of gift certificate. I always try to get rid of those, because it limits my flexibility. If I'd get $30 in Bitcoin, I'm okay with that. But if it's "Bitcoin" with certain limitations, I'd rather get rid of it as quickly as possible.