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Since September 2021, Bitcoin is recognized as El Salvador’s legal tender along with the US dollar. Bitcoin may be used for all transactions, regardless of limit, and “to any title that public or private, legal persons or entities require carrying out”.
The Government introduced the Bitcoin Law to regulate the use of this cryptocurrency for transactions within El Salvador. Because Bitcoin is a global currency, this decision opened El Salvador to international markets without restrictions or intermediaries and is expected to vastly improve the country’s strategic trade relations.
The impact of Bitcoin as a new digital currency in El Salvador goes much beyond the international sensation it has generated, and has a real economic impact on the citizens of the Republic. According to the World Bank, more than 20% of the GDP in El Salvador comes from remittances, sent to a large part of the population by the almost 3 million Salvadorans who live outside their homeland.
In a reality in which the cost of sending money to El Salvador can reach up to 40% of the value of the transfer itself, the integration of a new financial system without transfer costs or intermediary commissions, can be a true economic revolution.
Chivo Wallet, the wallet launched by the Government of El Salvador, will have no cost, will not charge commissions for sending or receiving remittances, nor for making or receiving payments; Conversion of bitcoin to dollars or vice versa will also be free of commission charge.