El Salvador Partners With American Software Company to Rectify Chivo Wallet Issues
The El Salvadoran government has tapped the services of a U.S. white-label software firm AlphaPoint, to improve the overall performance of the Chivo bitcoin wallet.
Improved Scalability and Stability for Chivo Wallet
El Salvador is leveraging AlphaPoint’s technology to fix the problems found in the government bitcoin wallet, Chivo. The company started work on the Chivo wallet back in December 2021.
Shortly after the implementation of the Bitcoin Law in September 2021, the Nayib Bukele-led government launched Chivo. The El Salvador President announced that citizens would receive $30 worth of bitcoin when they download the wallet app.
Also, Salvadorans using the app would not pay any commission on conversion and cash withdrawals across 200 ATMs in the country. In addition, there would be zero commission for users who use the app to send remittances, without also needing to carry cash.
However, the Chivo wallet had technical issues on the day it was launched, causing the government to temporarily take down the app for maintenance. The problems continued to persist over the months, with users complaining about their funds missing from their wallets.
In response to the complaints, the El Salvador government decided to partner with AlphaPoint to utilize the latter’s technology to improve the Chivo mobile application. The latest development could provide a solution for over 4 million users of the BTC wallet.
AlphaPoint, which has been offering its crypto-related services since 2013, worked on the frontend and backend infrastructure of the Chivo wallet app and also “improved the Lightning integration for nearly instantaneous low-fee Bitcoin transactions via QR and Lightning addresses.”
According to a statement from AlphaPoint co-founder and CEO, Igor Telyatnikov:
“No one else has attempted to execute a project of this nature. We at AlphaPoint are honored to be involved in the process and provide the reliable, scaled solutions needed for this effort. The Chivo Wallet app is currently supporting millions of Salvadorans, many of them accessing financial services for the first time.”
El Salvador not Willing to Bow to External Pressure
El Salvador’s efforts to improve its Chivo wallet comes shortly after the International Monetary Fund (IMF) reiterated its warning about the country’s bitcoin adoption. The IMF in a report earlier in January recommended that the government strips bitcoin of its legal tender status in the country.
According to the international body, bitcoin came with associated risks such as volatility, which could adversely affect the nation’s economy in the long run. The El Salvadoran government, however, did not seem to take lightly to the IMF’s statement.
As reported by crypto.news, the country’s Treasury Minister Alejandro Zelaya, said that the Central American nation would not be pressured by an external organization. Zelaya noted that El Salvador is a sovereign country and was free to make policies without outside interference.
Despite the current crypto market pullback, President Nayib Bukele continues to express support for bitcoin and has been on a bitcoin buying spree since September 2021.
The latest purchase happened on January 23, with the President announcing that El Salvador bought 410 BTC. According to Bukele, the country bought the dip adding “some guys are selling really cheap.”
