the remittance in and out of el salv via bitcoin (via CEX) is growing(2023-24). but the experience of the chivo-LN(2021) left a bad taste in many citizens and businesses mouth. both citizens and businesses try to avoid using chivo due to that bad LN experience pretending to be bitcoin, which has lead to many still not trusting bitcoin as they are not sure the 'bitcoin' they might get actually being bitcoin and not just another liquidity scam that cant settle of some other network
Pardon me, isn't Chivo a custodial wallet? they don't have to use lightning network because most people don't care about non custodial wallet, so I believe if they own Bitcoin, they will hold it in Chivo. AFAIK Chivo didn't charge any fees if someone send Bitcoin to other Chivo wallet, so why they need to use LN?
when first released in summer 2021 chivo used LN as the backnone.. where citizens had 'inbound balance from 'strike' .. and within 3 months it failed due to LN issues of strike
alot of citizens and merchants stopped using chivo and its inbound balance model.
basically citizens did not have their own self custody. they had $30 value of inbound balance from a LN institution.. were the LN institution had the actual custody in partnership with the governments coin hoard
chivo(el salv government) then moved to using Alphapoint as a custodian as a CEX backbone from january-ish of 2022 (second attempt).. instead of LN institution(that failed el salv)
the issue is that due to the debacle of the autumn 2021 bottlenecks and problems due to the stuff i said about the first attempt.. alot of el salv citizens and merchants still avoided using chivo and still blamed first attempt issue on bitcoin even though it was LN to blame.. now they just use alphapoint(as a cex) for remittance without the chivo part due to the bad taste left in their mouth due to the to 2021 experience(chivo-LN first attempt)
alphapoint (and its CEX accounts) are growing due to remittances.. but the chivo wallet part of domestic payments is still not as successful due to that first attempt failure due to LN
i personally was going to go to el salv.. but from testimonials i got and even the "2 months living in el salv" video shows trying to get a merchant to accept bitcoin direct is a headache, trying to lock in bitcoin to then use chivo to then ask merchants of they accept chivo is a headache. and using a ATM is usually just to convert crypto to fiat.. but even that is requiring face recognition and ID and a 30minute processing to get a sms alert when its then ok to cash out crypto to fiat is a headache.. so still not a ecosystem of just using crypto to buy groceries, pay rent, bills.
ill wait a lil longer for them to work out the kinks, and try to get people to trust a second/third attempt at launching crypto nationally there for every day use
from what i can see alphapoint is becoming the CEX 'bank' and people just use alphapoint to hoard peoples crypto like people use coinbase as a bank for crypto in america. hopefully alphapoint develops better options than the 2021 first attempt. but only time will tell, and in 2024 i dont see testimonials that people can easily use their alphapoint custody funds to do easy headache free person-to person, person-to-business payments.. and its mainly currently just used for US/EU cex-to-elsalv cex for remittances which is the only growth factor measurably
