The Salvadoran government has moved to prevent users of its Chivo digital wallet from gaming the app's price freeze feature to glean risk-gratis profits through arbitrage.

On Tuesday, Chivo's Twitter account announced that wallet users will be unable to run into the reference cost provided for trades executed using the cost freeze feature — which allows traders to retain the Bitcoin (BTC) price quoted by the app for upwards to one minute.

Chivo tweeted that opportunistic traders accept been using the cost freeze characteristic to scalp for arbitrage across other cryptocurrency trading platforms globally during periods of significant price volatility for Bitcoin. The frozen price feature gave traders an opportunity to have advantage of toll gaps in other exchange rates while quickly using the Lightning Network to move assets, Chivo explained.

"The 'scalping' carried out consisted of taking advantage of the fact that Chivo kept the rate frozen for one minute and taking advantage of that minute to compare the rate with other exchanges and see if the price of Bitcoin went downwardly or up."

Despite loftier-frequency scalping comprising a legal class of trading, Chivo describes traders who used Chivo's frozen prices to arbitrage against real-time exchanges as beingness extracting potentially "endless" profits through "fraud."

Looking forwards, Chivo plans to remove the price feature and offer real-time price references for Bitcoin traders using its app.

Related: El Salvador ranks 3rd in global Bitcoin ATM installations, data finds

On Sept. 7, El Salvador enacted its controversial Bitcoin Law recognizing BTC every bit legal tender nationwide.

Despite critics highlighting the depression rates of digital and blockchain literacy amid Salvadorans in the run-up to the law taking consequence, the legislation appears to have fostered widespread Bitcoin adoption across the country.

Salvadorans now appear to exist exchanging their United States dollar savings for BTC at an accelerating pace, with President Nayib Bukele sharing that Chivo had recorded 24,076 remittance requests worth more $three million on Thursday.

On Oct. 10, the Salvadoran government likewise announced its plans to invest part of the $4 million worth of profits from Chivo's Bitcoin trust to construct a new veterinarian hospital in the local capital of San Salvador.