Quick Take
- Over the past few months, users of the Chivo wallet in El Salvador have been reporting a variety of issues with the app, including blocked accounts, unauthorized charges and failed transactions. Meanwhile, phishing scams and bots are targeting people who reach out for help on social media.
- About 1,200 people have reported issues with Chivo to human rights organization Cristosal, with the majority saying that their personal account details were used without authorization to open or use accounts in their name.
- Many Chivo users say they are still waiting for answers to their problems, sometimes weeks or months later.
While many spent the holiday season with friends and family, at least dozens of people in El Salvador were also dedicating a good chunk of time to chasing down customer support for their government-provided bitcoin wallets — and posting about it on Twitter.
Sometime between November and December, the website began to fill up with noticeably more complaints about unknown or failed transactions related to Chivo, the state-backed bitcoin wallet that went live in September to much fanfare.
“I’ve spent almost two months waiting for them to help me with a transaction of almost $1,000 at the time,” Twitter user @Josh_91_L posted on December 9. “Now with the value of BTC plummeting and continuing like this, it seems like it will be much less. I’m still hoping that one day they can resolve it, willingly.”
“Yesterday, I found out transactions in my bank account have been made through the Chivo Wallet that add up to an amount over $3,000,” Twitter user Jenn_Larin85 wrote on Dec. 19. “Hoping that they [solve this for me] as soon as possible!”
Chivo, which is local slang for “cool,” has played a starring role in the drama that has been ongoing since El Salvador enacted a law in September making Bitcoin legal tender. The wallet, which is optional to use and supports both Bitcoin and the local currency of U.S. dollars, is designed to offer a few perks just for Salvadorans.
In addition to getting a free $30 in Bitcoin when signing up, Chivo users pay no commission for remittances to other users of the app, currency conversions or taking physical cash out of the 200 Chivo-branded ATMs around the country.
When Chivo works the way it’s supposed to, these features have made it easier for Salvadorans to send remittances and pay for things without needing physical cash. However, many users say a host of issues have shaken their confidence in the app.
Over the past month, The Block has reviewed a range of complaints about Chivo on social media, including claims of unauthorized charges in the app and external bank accounts, blocked accounts, phishing schemes targeting users, failed transfers to other wallets and identity theft. In addition, more than 10 people shared their firsthand accounts of issues for this article.
While The Block couldn’t independently verify all of the social media posts complaining about Chivo, our reporting unearthed evidence that in its short life, the app has experienced several types of problems that have affected a significant number of people.
And yet, The Block was unable to obtain clear responses or comments explaining these issues from either government officials or representatives of the private companies that helped El Salvador develop Chivo.
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