Beautiful Virgin Islands

Tuesday, Jun 24, 2025

More Salvadorans Have Bitcoin Wallets Than Traditional Bank Accounts

More Salvadorans Have Bitcoin Wallets Than Traditional Bank Accounts

It has been a little over a month since El Salvador made Bitcoin became legal tender in the country. Now the number of Salvadorians who have a Chivo wallet is nearly twice as many than those who have a bank account in the country, according to Forbes.

On October 3, President Nayib Bukele tweeted that 3 million Salvadorians – 46% of the population – were using the Chivo.

According to Statista‘s data from 2017 only 29% of Salvadorians had a bank account. While in 2014, the same figure was 35%, showing decline in the banked population.

It would seem that the Bitcoin experiment in El Salvador is going well. But, there has been opposition from the public, and people questioning President Bukele’s motivations to push ahead with the Bitcoin adoption.

What do Salvadorans think of the Bitcoin Law?
While the international financial institutions have raised their concerns and public protests have taken place in the country, President Bukele has remained unswayed with his stance on Bitcoin.

Salvadorians who oppose the Bitcoin adoption say that BTC favors well-resourced speculators. But to use it as a currency, they maintain that extreme volatility means everyday people might lose out.

Critics have also pointed out certain privacy concerns of using Chivo, as the wallet requires users to consent to microphone and contact access.

With some surveys saying two-thirds of Salvadorians oppose the Bitcoin law, Economist Ricardo Castaneda questioned President Bukele’s motivation to continue down and raised concerns of privacy:

“There has been a high degree of improvisation in the rollout of Chivo and a great deal of opacity.

The app asks for access to your microphone and your contacts, which are not needed for a wallet. Bitcoin might be a distraction but given the decision to push ahead with the plan despite popular opposition and the advice of experts, it could also be an important pillar of Bukele’s political project.”

However, there are signs that indicate that the Salvadorans are embracing the change.

Last week, President Bukele tweeted that Chivo wallet users are exchanging into Bitcoin and holding $BTC at a ratio of 4:1.

“Since yesterday, Salvadorans are inserting more cash (to buy bitcoin) than what they are withdrawing from the chivowallet ATMs. And if we add remittances (almost $2 million per day), the incoming USD QUADRUPLES the outflow.”

Are the numbers reliable?
The number do show that more people have downloaded the Chivo wallet than have bank accounts. But, given the $30 incentive to download it, it might not be accurate to say that Bitcoin is more popular than existing legal tender USD?

If local banks had a $30 incentive to open a bank account, there might similar soar in people opening bank accounts.

Also local news outlets in El Salvador have reported instances of identity fraud involving the Chivo wallet. According to El Mundo, some Salvadorians have tried to download Chivo only to discover that their details have already been registered and the $30 bonus claimed.

This doesn’t really speak highly of Chivo’s security, but it also would indicate that the number of wallet users is overstated.

Source: More Salvadorans Have Bitcoin Wallets Than Traditional Bank Accounts – Fintechs.fi

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
×