According to the US National Bureau of Economic Research, six out of ten Salvadorians that use Chivo quit using the wallet right after claiming the $30 bitcoin incentive for downloading and using the app.

Moreover, the report of the Bureau states that despite that “most citizens in El Salvador have a cell phone with internet, less than 60% of them downloaded Chivo Wallet”.

Another indicator that the Salvadorian crypto project is not going according to plan is the fact that there were no reports of transactions from the designated crypto/bitcoin ATMs for an entire month.

In addition, the report by the National Bureau of Economic Research states that “most users who used Chivo after spending the $30 bonus do not engage with the app intensively”, hinting that the majority of users are only registering to claim the bitcoin incentive.

Furthermore, another indicator of the struggle of Chivo is the report by the Central Bank of El Salvador a few months back that shows only 1.6% of the total remittances in February come from digital wallets. As per the study by the US Bureau, there were practically no new users in the first quarter of 2022.

In the first quarter of 2022, we find almost no new adopters and the share of remittances in bitcoin is at its lowest point since Chivo Wallet’s launch.

The study concludes that only 5% of the citizens in El Salvador used bitcoin to pay their taxes and that 11.5% of them reported having a positive experience using crypto for making transactions. Lastly, the Bureau reveals that 20% of the companies in the country are currently accepting crypto, i.e. bitcoin.

Considering the progressive crypto stance of President Nayib Bukele who even revealed future plans to build the first bitcoin powered city in the world, the news is that six out of ten Salvadorians that use Chivo quit the wallet right after claiming the bonus is definitely a defeating statistic.