El Salvador’s president Naybib Bukele introduced bitcoin with the promise it would boost the economy, help people without access to banking facilities and save money on remittances.
Chivo has had “virtually no downloads” so far in 2022, according to a study by Fernando Alvarez, at the University of Chicago and his colleagues.
New Chivo users receive a $30 bonus for signing up, which is equivalent to 0.7 per cent of the average Salvadorans annual income.
CAR’s decision to adopt bitcoin rather than the more-favoured US dollar may mean there is more desire to swap state-backed currencies for cryptocurrencies, says Alvarez.
M-PESA’s success shows it is possible to bank the unbanked in Africa and lift people out of poverty, but the technology uses basic systems and existing infrastructure, not a new and evolving currency which few understand.