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The collapse of the bitcoin rate was associated with the problematic launch of the cryptocurrency in El Salvador

Bitcoin price, presumably, collapsed due to problems with the launch of cryptocurrency wallets in El Salvador. About it writes Financial Times. This country was the first to accept bitcoin as a legal currency and launched official payments in cryptocurrency, but faced problems in implementing the idea.

Source: VOI

Source: VOI

Since September 7, Bitcoin has become one of the official currencies of El Salvador. Now all businesses in the country are required to accept cryptocurrencies as payment. To make the service publicly available, authorities have developed an app called Chivo, a national digital wallet for storing cryptocurrencies. However, shortly after the launch, the President of El Salvador announced a temporary shutdown of the application to expand the servers.

Against the backdrop of these events, Bitcoin fell by more than 10%. At the moment, its price dropped to $ 43.1 thousand. At the time of writing the news, its value has recovered to $ 46.8 thousand.

Economic expert Luis Membreño said the problems were predictable. He called the incident a disaster, noting that it could lead to losses for citizens and undermine confidence in the system. In addition, some experts do not support the decision of the Salvadoran authorities. This is due to the fact that the implementation of the program increases the burden on the state budget. In addition, despite the introduction of settlements in bitcoins, all debt obligations will be calculated in US dollars.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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