Chivo Wallet Puts An End To Trade Profiting Feature

KEY POINTS

Chivo Wallet removes trade profiting feature due to 'scalping' which is technically legal
The Chivo team claims that this feature goes against the trading company
After new update, users face more difficulties with Chivo Wallet

El Salvador's adoption of Bitcoin (BTC) as legal tender has been one of the most talk-about financial decisions of the year. Led by President Nayib Bukele, the government introduced the Chivo wallet for storing or transferring cryptocurrencies. But in a recent tweet, the Chivo wallet team announced their plans to remove a so-called 'trade profiting feature.'

Hemos tenido que deshabilitar temporalmente la opción de ver el precio del Bitcoin congelado durante un minuto.

Lamentablemente, muchos de nuestros usuarios lo utilizaban para hacer “scalping”, que es legal, pero sin tener la opción de una tasa congelada.

🧵 Hilo:
— chivo (@chivowallet) October 18, 2021

The above tweet translates to, "We had to temporarily disable the option to see the Bitcoin price frozen for one minute. Unfortunately, many of our users used it for scalping, which is legal, but without having the option of a frozen rate."

According to the Chivo Wallet team, the scalping feature was promoting speculation. Scalping allows users to freeze BTC prices for a minute before confirming the trade, which would enable any trader to compare prices on other cryptocurrency exchanges and choose the best deal.

This had proven to be unfair to other wallet users and among the entire crypto trading community as well.

Chivo Wallets: A big list of problems

When El Salvador adopted Bitcoin as the legal tender, the plans of establishing mining farms and a government-backed crypto wallet were also revealed. The Chivo Wallet was supposed to make the understanding of Bitcoin easy for citizens of the Latin American country, but it only ended up complicating the concept further due to a long list of errors and bugs.

There were many complaints wherein users who sold their crypto ended up with less money than they should have. Users of the Chivo wallet feel that this is due to the platform's fees for processing transactions. However, the matter hasn't been confirmed yet.

Critosal, a human rights organization operating in El Salvador, has received around 700 applications regarding the functioning of Chivo wallet and the bugs in the application itself. Furthermore, for activating an account, the user has to submit their identification. But, it was witnessed that some of these IDs were already in use. No action has been taken on this matter for now.