Bitcoin / Crypto News / Cryptocurrency · October 31, 2021

People of El Salvador are Converting their USD to Bitcoin

El Salvador is known to have made Bitcoin a legal tender despite the fact that both IMF and World Bank despised this activity. It was said that if El Salvador managed to make Bitcoin illegal tender, then it would be the end of the country’s economic growth as we know it, but none of it has happened yet. There seems to be a new kind of interest going among the people of El Salvador regarding Bitcoin. The Chivo wallet, which is a state-controlled crypto wallet, has registered almost half of El Salvador’s people.

To make people acclimated to this wallet, there was this state-controlled campaign that entitled every national of El Salvador to be able to get their hands on a $30 gift if they successfully registered themselves with the wallet. These $30 would have been converted into Bitcoin and be deposited in their wallets. The statistical data collected at a national level regarding the Chivo wallet states that people have withdrawn less crypto from their wallets and have actually deposited more USD dollars to be able to buy Bitcoin.

Crypto Adoption Increases in El Salvador

It seems that the people of El Salvador are actually onto this state-backed initiative of making Bitcoin a legal tender not only in a legal sense but also in a literal capacity. The president of El Salvador has recently made a tweet about the number of remittance requests which the wallet has obtained in the last 48 hours, which are an all-time record high of 24,076 requests in total. It could be the fact that the people of El Salvador have guessed the game, and they want to play it for themselves.

They know that crypto serves as a hedge against inflation, and that is why they are converting all of their USD dollars into Bitcoin so that they could be able to convert it back into Fiat when they need to, but they would have gained more profit this way and thus fighting the inflation. Either this or people are just so ecstatic about this whole thing, one can’t guess which one it is.