London Daily

Focus on the big picture.
Friday, Jun 20, 2025

El Salvador's national Bitcoin system crashes as cryptocurrency becomes legal tender

El Salvador's national Bitcoin system crashes as cryptocurrency becomes legal tender

The Chivo Wallet system crashed on Tuesday when a recently passed law recognising Bitcoin as legal tender in El Salvador took effect.

El Salvador's move to become the first country in the world to make Bitcoin legal tender was marred on launch day when the government's digital wallet system crashed.

President Nayib Bukele confirmed that the Chivo Wallet had been taken offline following complaints about installation problems. No time has been given for when it will be online again.

He said that server capacity was being increased - a "relatively straightforward problem to fix", but one that needs the system to be disconnected.

"Mejor despacio y con buena letra," he tweeted, an idiom that translates as "slowly and with good handwriting" - meaning that it's better not to rush.

"Un poquito de paciencia," he added, meaning "a little bit of patience".

Salvadorans have protested against Bitcoin becoming legal tender


Even the Chivo Wallet's website was taken down on Tuesday when a recently passed law recognising Bitcoin as legal tender in El Salvador took effect.

Citizens have protested against it, complaining that there has been too little explanation from officials about what benefit Bitcoin will bring and how transactions using the cryptocurrency will work.

Claudia Molina, a 42-year-old who sells T-shirts and souvenirs, criticised the plan.

"We don't know the currency. We don’t know where it comes from. We don't know if it's going to bring us profit or loss. We don’t know anything," she told Reuters.

"They haven't given us training. They haven't told us what we're going to use or how to make the change," she added.

El Salvador previously adopted the US dollar as legal tender in 2001


Foreign cryptocurrency enthusiasts have supported El Salvador's move, with a movement stirring for people to buy $30 (£21.76) in the cryptocurrency together to mark the law coming into effect, potentially driving up the price.

Bitcoin has been trading steadily at around $51,000 (£37,000) over the past few days - its highest since May, when it fell sharply after China announced curbs on cryptocurrency transactions - but no price pump has materialised.

El Salvador has begun to install Bitcoin ATMs in cities around the country where citizens will be able to convert their digital tokens into cash, backed by a $150m (£108m) government fund.

Polls have reported that most Salvadorans are opposed to the adoption of Bitcoin, despite the government pledging to provide $30 (£22) in the token to each citizen through the state-provided digital wallet.

President Nayib Bukele confirmed that the digital wallets system was crashing


Carlos Carcah, a professor at El Salvador's Superior School of Economics and Business, argued that adoption of Bitcoin as legal tender "is not necessary, nor convenient".

He added: "As long as there is someone who accepts payment with Bitcoin, the same as they accept dollars, there wouldn't be problems."

He noted that Bitcoin is extremely volatile, so investors "run the risk of becoming rich and the next day being poor".

El Salvador's own currency, the Salvadoran colon, was replaced by the US dollar in 2001.

The country depends heavily on money which citizens based abroad, often in the US, send home and these remittances to El Salvador were worth almost $6bn in 2019, amounting to 16% of El Salvador's gross domestic product.

The country moved to using the US dollar as legal tender as a result of these remittances, and the move to Bitcoin is based on an expectation that more Salvadorans will begin sending money home using the cryptocurrency - and the Chivo Wallet is intended to be available to citizens who are residing abroad.

Newsletter

Related Articles

0:00
0:00
Close
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
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×