London Daily

Focus on the big picture.
Wednesday, Jul 15, 2026

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
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Forget Tinder: The Surprising Platform Where People Find Love
UK Government Faces Growing Debate Over Local Control of Immigration Enforcement
UK Biodiversity Forum Highlights Business Need to Protect Natural Environment
UK Parliament to Consider Workplace Temperature Limits Amid Climate Concerns
UK Parliament Considers Independent Immigration Appeals Authority Proposal
BBC Charter Renewal Scrutiny Intensifies as Parliament Reviews Broadcaster’s Future
Parliament Reviews Future of UK Maternity and Neonatal Care Services
UK-India Trade Accelerator Launched to Help Smaller Firms Expand Into Indian Market
UK Business Leaders Meet in Edinburgh to Address Economic Risks From Biodiversity Loss
UK Parliament Prepares for Sir Keir Starmer’s Final Prime Minister’s Questions Before Leadership Transition
Green Party-Led Lewisham Council Moves Against Cooperation With Home Office Immigration Raids
UK Government Faces Parliamentary Pressure Over Capita Contracts in Shared Services Programme
UK Economy Expected to See Modest Growth as OECD Highlights Fiscal and Global Risks
Public Accounts Committee Warns UK Government’s Four Point Three Billion Pound Shared Services Plan Risks Failure
EU and UK Sign Agreement Removing Gibraltar Border Controls After Years of Post-Brexit Uncertainty
OECD Warns UK Must Maintain Fiscal Discipline as Andy Burnham Prepares to Become Prime Minister
UK-India Free Trade Agreement Enters Into Force as Businesses Seek New Growth Opportunities
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
On the Island That Did Not Yield to Trump, There Is No Electricity, and 10 Million Live in Darkness
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
Key Trends to Watch
United Nations Expert Calls for Full Implementation of Supreme Court Ruling on Legal Definition of Sex
Industry Coalition Urges Labour Lawmakers to Back Continued North Sea Oil and Gas Production
Parliamentary Committee Calls for Tougher Restrictions on Unhealthy Food Advertising
Government Expands Awaab's Law to Cover Heat and Additional Housing Hazards
Energy Regulator Opens Independent Investigation Into National Grid Operator
United Kingdom and European Union Sign Landmark Gibraltar Border Agreement
Chancellor Unveils Financial Services Reform and Artificial Intelligence Strategy at Mansion House
Counterterrorism Police Take Over Investigation Into Killing of Former Minister Ann Widdecombe
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
United Kingdom Opens Trade Consultation With Indonesia, Philippines, United Arab Emirates and Uruguay
Robert Jenrick Joins Reform UK After Leaving Conservative Party Leadership Role
Counter-Terrorism Police Take Over Investigation into Murder of Former MP Ann Widdecombe
Andy Burnham Secures Strong Labour Backing in Race to Succeed Keir Starmer
Global Markets Slide as Middle East Conflict Escalation Sends Oil Prices Higher
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
×