El Salvador is trying to scale up the BTC adoption in the country. It is also trying to make things interesting in its app and Chivo crypto wallet. For that, it has offered $30 worth of BTC to every new user. Here are some of the ways Salvadorans are attempting to use their BTC funds:
1. Salvadorans converting funding to fiat:
The government is not allowing direct cashing out at BTC ATMs, so the recipients need to take another route to convert the fund into fiat. The YouTubers have provided different indirect ways to do so. For instance, users can transfer their funds to friends and relatives, after which the receiver can reciprocate the amount back in the form of fiat. This will let the users withdraw their $30 from the Chivo ATMs.
2. Selling the BTC outside:
According to reports, Facebook is now full of people interested in crypto who want to buy $30 BTC handouts for $25 from Salvadorans. They are ready to pay through direct bank transfers or e-pay services. However, many citizens have also been cheated by many on Facebook. So selling BTC at a lower rate to civilians might be risky for some.
3. Spending on daily things:
Supermarkets accept the Chico BTC payments very quickly, and many residents are fine using the amount there. As this method is helpful in addition to being safe, people are busy using BTC in their shopping trips.
4. Transferring it to something safe:
Many citizens of the country do not trust the government-issued Chivo app, the reason being centralization. So, they want to move their BTC from the platform to some secure and decentralized wallet. However, this makes them pay extra commission fees during withdrawals.
5. Depositing in the bank:
Many Salvadorans are trying different indirect methods to allow them to deposit in their bank accounts. This again means that they and their friend work together. A user can credit their friend’s USD Bank account using his BTC funds with the help of the Chivo app functionality. The other person will then reciprocate the amount back to the sender’s bank account. This process might be slow, but it is one of the most effective ways.
Many economists are warning that this level of BTC adoption might sometimes lose its aim. One should focus on long-term adoption rather than shortcuts. This is an excellent initiative by the government, but it will take time to adopt BTC in the country.