The latest casualty? Chivo Pets, the government’s blockchain-based pet care platform, which abruptly ceased operations last week.
Thousands of pet owners who relied on the service for veterinary appointments and medication tracking now find themselves high and dry. No warning, no change plan. Just gone.
This shutdown follows a pattern of retreat from Bukele’s once-ambitious Bitcoin agenda. The government’s Chivo wallet app, once touted as revolutionary, has been plagued by technical glitches and security issues since day one.
Now it’s on the chopping block too, with plans to sell or shut it down completely.
The numbers tell the story. A recent survey revealed that 92% of Salvadorans don’t use Bitcoin at all in 2024. The Legislative Assembly voted overwhelmingly to modify the Bitcoin law, removing the term “currency” after years of failed adoption. Despite initial optimism with Chivo wallet bonuses of $30 in Bitcoin to early adopters, most users stopped using the app immediately after collecting their incentives.
So much for financial inclusion. Bitcoin remittances? Less than 1% of the total. Businesses that initially accepted Bitcoin are quietly dropping support.
Even the government has slowed its Bitcoin purchases to a crawl.
The final nail in the crypto coffin came with December’s $1.4 billion IMF loan agreement. The price tag? Gutting most of Bukele’s Bitcoin initiatives.
Taxes must now be paid in dollars only. The flashy “Bitcoin City” and “Volcano Bonds” projects? Scaled back to virtually nothing.
International observers who once watched El Salvador with curiosity now point to it as a cautionary tale.
Other countries that were considering similar moves have backed away slowly. Even the crypto community has gone quiet on El Salvador.
For ordinary Salvadorans, the experiment has meant economic uncertainty, with GDP growth slowing and sovereign debt ratings taking a hit.
While Bitcoin remains technically legal tender, its role is being minimized to appease international lenders.
This is especially ironic given that cryptocurrencies typically offer inflation protection when traditional currencies lose value.
Bukele’s crypto revolution? More like a costly detour. The Bitcoin bros have left the building.
