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One of the key architects behind El Salvador’s Chivo Wallet, Arley Lozano (aka Vakano), has urged the government to shut down the state-run Bitcoin wallet, citing its ongoing controversies and inefficiencies.
Calls for Closure
In an interview with Criptonoticias, Lozano, Co-Founder of Panda Exchange and the lead developer for the Chivo Wallet, stated:
“The most sensible thing to do would be to shut down the Chivo Wallet due to the controversy it has generated since its launch.”
Launched in September 2021, Chivo was celebrated as the world’s first government-run Bitcoin wallet, designed to drive BTC adoption. Users were incentivized with a $30 BTC bonus upon signup.
However, the wallet’s rollout was plagued by:
- Identity theft allegations.
- Fraudulent activity linked to the $30 incentive.
- Technical glitches, including account freezes.
Lozano revealed that many users only downloaded the app to claim the bonus, immediately converting it to fiat. This led to a sharp decline in active users and continued public dissatisfaction.
Lozano’s Critique
Lozano described the wallet’s shortcomings as an obstacle to El Salvador’s Bitcoin adoption goals, stating:
“Many users have experienced problems with their accounts. Others have exploited the Bitcoin wallet to commit fraud. The International Monetary Fund (IMF) even recommended that El Salvador distance itself from the app.”
He further argued that shutting down Chivo Wallet could be a natural step in the country’s evolution toward better crypto infrastructure.
Privatization or Discontinuation?
The Salvadoran government recently announced plans to either privatize or discontinue the Chivo Wallet, assuring users that services would not be disrupted during the transition.
Lozano, however, criticized this approach:
“Privatization would be a mistake. Superior technologies to the Chivo Wallet are already available, especially as we approach 2025. Competing companies offering Bitcoin wallet services will benefit from this decision and attract Salvadoran users.”
Development Issues and Missed Opportunities
Lozano admitted that his team, in collaboration with the US-based Athena Bitcoin, was unprepared to handle the scale and complexity of Chivo Wallet. He noted that by December 2021, it was clear the project was failing, adding:
“That was the moment the government should have decided to end the Chivo Wallet and start fresh with a new team and strategy.”
Looking Forward
As El Salvador navigates its Bitcoin experiment, the fate of Chivo Wallet remains uncertain. While the app symbolized the country’s pioneering crypto adoption, its flaws have highlighted the challenges of implementing large-scale blockchain solutions.
For insights on crypto adoption, blockchain strategies, and the latest developments in cryptocurrency, visit CentBit.Online – your trusted source for crypto expertise in Bangladesh.
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