The US National Bureau of Economic Research stated that “after using the $30 bonus, people are no longer interested in the Chivo app.”
According to a report by the US National Bureau of Economic Research, only 4 out of 10 Salvadorans who downloaded the state-run Bitcoin wallet Chivo said they still use it after receiving the $30 Bitcoin incentive offered by President Nayib Bukele’s government. .
The study, based on face-to-face surveys of adults in 1800 households in El Salvador in February, concluded that “Most users who use Chivo after spending the $30 bonus do not engage heavily with the app.” “The average user reports no ATM withdrawals and no payments sent or received in Bitcoin in a given month,” the report states. Although most citizens in El Salvador have a mobile phone with internet, less than 60% of them have downloaded the app.
According to the report, Chivo is not widely used for receiving remittances from abroad. The report states:
“In Q1 2022, there are hardly any new adopters and the share of remittances in Bitcoin is at its lowest point since the launch of Chivo Wallet.”
The report also reported that 5% of Salvadorans pay taxes using Bitcoin, 20% of firms accept Bitcoin and 11.4% sell using cryptocurrency.
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