In El Salvador, Bitcoin appears to be a solid alternative for those currently excluded from banking services.
65,000 bitcoin transactions processed per second in El Salvador, the official wallet chivo Bitcoin is showing very impressive numbers about Bitcoin transactions.
The number of users, a few weeks after launch, surpassed 2.2 million, probably more than the total number of Salvadorans with a bank account.
Chivo is gaining an increasing number of users.
The fact that this growth has taken place in less than a month suggests that many Central Americans, who currently do not have access to banking services, will soon use Chivo as an alternative to receiving and spending bitcoin, as BTC is now legal tender in parents.
Chivo is acquiring new users at an average rate of 142 every minute, or more than 8,500 new users every hour and more than 200,000 a day.
If this rate is maintained, next month all adults in the country can be using it.
The government has made $30 available in BTC to any Salvadoran citizen who downloads and installs Chivo. It is logical to expect that many people will decide to do so, in a country where GDP per capita is less than US$10 a day.
Chivo appears to be recording a volume of over 65,000 transactions per second, made possible by using the Lightning Network, which allows for very fast and low-cost BTC transactions.
This number reveals that Salvadorans are not only downloading and installing the wallet to receive their $30 bonus, but are also using it on a large scale to receive or send bitcoins.
Bitcoin transactions increase daily in El Salvador
This is a very large number for a country with only 6.5 million inhabitants. That would mean an average of nearly 4 million transactions per minute, equivalent to over 200 million per hour.
President Bukele himself specifies that this value does not refer to the number of new transactions that are executed on average every second, but to the average number of transactions that the system processes. It takes several seconds for each transaction to be fully processed, and the actual number of transactions per second can be an order of magnitude smaller.
“Transactions per second” doesn’t mean that we have 65,437 new transactions every sec, but that the system is processing an average of 65,437 transactions every sec.
Remember a single transaction takes several secs.
Don’t try to figure out total daily transactions with this.
— Nayib Bukele 🇸🇻 (@nayibbukele) September 27, 2021
As far as bitcoin ATMs are concerned, the figure released is around 14,000 transactions per day, far from the 65,000 transactions per second processed by Chivo.
Salvadorans are using Chivo a lot, perhaps even more than for banking in general, although transaction volumes processed in dollars, for example, are not known.
It is possible that El Salvador will become the first country where bitcoin is commonly used as an everyday currency, alongside the US dollar.