El Salvador’s crypto wallet processed $52 million in remittances

El Salvador’s official crypto wallet Chivo, which legalized Bitcoin last year, has processed remittances worth around $52 million so far this year. Many citizens of El Salvador work abroad and send funds to their family members. The Chivo wallet service was launched in September last year and is controlled by the pro-crypto government of El Salvador President Nayib Bukele.

The head of the Central Bank of El Salvador, Douglas Rodríguez, said Chivo Wallet processed more transactions this year than last year. According to a CoinTelegraph report, remittance deposits on Chivo increased by about 3.9 percent in the first five months of this year. In this wallet service, no commission is deducted on transactions from bitcoin to US dollars. Bukele claimed that the service would allow El Salvador residents to save about $400 million annually in commissions. This wallet service is supported by AlphaPoint, an American crypto exchange software firm.

In March, Bukele had expressed displeasure over the US asking for information about his country’s financial situation. He said, “The US government is not in favor of freedom.” Due to the decision to give legal status to bitcoin, the US Senate wants to understand and mitigate the risk to the US economy from it. The “Accountability for Cryptocurrencies in El Salvador (ACES) Act” has been passed in the US. El Salvador uses the US dollar as its currency. “I never thought what we’re doing here would scare the US government,” Bukele said in a post on Twitter.

Bukele continues to support the crypto industry, despite the International Monetary Fund (IMF) condemning the legalization of bitcoin. The IMF has asked El Salvador to close the $150 million bitcoin trust fund and return unused funds to its Treasury. The purpose of this trust fund was to allow people concerned with using bitcoin to automatically convert it into dollars.

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