Bitcoin is now officially recognized as a currency in El Salvador. However, the crypto markets and exchanges are struggling. According to Coinbase, Bitcoin's price plunged to $43,000 from $50,000 on Tuesday morning. It seems that El Salvador's official Bitcoin app has not been able keep up.
CNBC reported Tuesday morning that El Salvador's official crypto app Chivo was not available for installation to new users. President Nayib Bukele has since said that the app will reopen for signups. However, he called the new time a test.
Coinbase and Kraken, two major exchanges, have reported issues with transactions or payments not being processed or delayed. However, not everyone has issues trading. Cash App reports no issues with its Bitcoin services and Robinhood doesn't report any problems trading crypto assets.
Our apps are experiencing issues as we know that transactions are being delayed or cancelled at high rates. We are currently investigating the problem and will update this page as soon as more information becomes available. Coinbase Support (@CoinbaseSupport) September 7, 2021
El Salvador adopted a June resolution to adopt Bitcoin. The currency has been championed by President Bukele in both policy and Twitter. However, it will not be the country's sole currency. El Salvador used the US Dollar in the past, and it will be continued to be accepted by the country. Vendors that are able will accept both currencies. According to the Salvadorian government, Bitcoin will benefit citizens who don't have access or often receive money from their family in the United States.
This plan has sparked significant opposition within the country. Protests erupted in the capital from veterans and retirees concerned about their pensions, as well unions and workers. Protestors raised concerns about Bitcoin's unstable price and its impact on daily currency use. President Bukele responded that citizens could continue to use the US dollar even if they did not want to use Bitcoin.