Chivo Wallet Deactivates Bitcoin Quote Option Due to Trade Fraud

The team responsible for El Salvador’s government wallet, Chivo, reported this week that it had “temporarily” disabled the option to see the price of frozen Bitcoin (BTC) for a minute, as several users used it to commit a type of “fraud” linked to… speculation (for short term trading).

This was explained by the company in a short thread from Twitter, highlighting that users benefited from having their exchange rate frozen for one minute, the time they used to compare the price with other exchanges and see if it cost BTC descended or rose.

At the time, if Bitcoin goes up, they buy, taking advantage of the fact that Chivo has not updated its price; But if it comes down, they sell out, before Chivo is updated; Generating an endless source of money whose only limit was the number of times they “speculated”.

Chivo Wallet, the digital Bitcoin wallet for the government of El Salvador.

As they explain, do speculation with a frozen price, and compare it with the exchanges in real time, It is a kind of “fraud”.

So, now they’re going to limit the visibility of the frozen rate “as we go to instant convertibility (and we’re no longer frozen)”, so they can make trade “As they like”, but with The real price is updated instantly.

Chivo explains that while this is happening, the option to see the rate at conversion time will “continue to be disabled,” but all other functionality will work.

What do users say?

In the same social network, you can see the multiplicity of opinions of users of Chivo Wallet, a Application who already had many problems with Salvadorans, that starts from System failure until the identity theftAnd Just like we mentioned on CriptoNoticias.

One user, Odir Pineda, criticized the app’s scale, recalling that most users exchanges They use frozen rates to be able to work.

“Can you imagine the problem this would cause when paying in a store?”

Andrea de Herrera, another user of Pocket wallet, also questioned the decision:

«So if my son invests my money in Chivo, and cashes out my winnings, can I not trade anymore? Just because you think it’s “illegal”. I don’t feel it is illegal to use other apps to see real time as BTC goes up or down, I feel this is selfish on your part.”

There has been a frequent comment that the app starts showing failures when bitcoin is on the rise, like this week, which once again surpassed 60,000 USD It seems to be heading towards a A new high ever.

“I was absolutely not premeditated (Chivo Wallet). They don’t even hide the siege. Only when the coin goes up, no one can put their money to win,” Pineda insisted, continuing @jeffry_sandova1, who criticized: “The app works fine again when the bitcoin price drops (too little).”

Has the sale of bitcoin affected?

It is difficult to know whether, according to the government company metric, there is a negative or positive impact on the sale of bitcoin, since the wallet does not provide metrics or charts to this effect, Neither in their social networks nor in Web page official.

In fact, the last Development On his Chivo Wallet performance Salvadoran President Neb Bukele, on September 27.

Via Twitter, show a profile dashboard From the app, with more than 2.2 million registered users, more than 65,437 transactions per second It is processed by the system, as Bukele himself explained.

Remember that a single transaction takes several seconds. The president cautioned not to try to calculate the total daily dealings with this.”