Researchers say that those who continue using the Chivo Wallet are using it to hold and transfer dollars, El Salvador’s official currency, similar to how one uses any digital wallet or bank. Some respondents told the researchers that they use the app as a debit card for dollars, with 20% of Chivo users saying they now spend less cash.

Chivo’s launch was plagued with functionality and security issues. Though around half of the Salvadorans surveyed have downloaded Chivo to date, with 40% of those downloads happening in September 2021, around 61% of those have abandoned it after withdrawing the $30 dollar sign-up incentive.

Only 1.6% of all remittances were received in bitcoins via digital wallets in February 2022.

Many living in tourist hot spots on the Pacific coast, where Bitcoin usage is highest, have transitioned to other crypto wallets, such as the privately developed Bitcoin Beach.

Chivo download numbers have been negligible in 2022, suggesting that the push has run out of steam. Some of those who have stuck with the application are using it for transactions unrelated to Bitcoin.

According to Álvarez, the average user did not see an incentive to keep using Bitcoin rather than dollars.

Chivo is a “very expensive Square or Cash App clone used by an incredibly reduced and niche user base,” he told Rest of World.

Experts told El Faro that it is concerning that Chivo is being used as a large bank without having to comply with the usual financial regulations.