There id no proof that the dollars in the app are actually backed by dollars.
Correct. Just like with a bank, or with a custodial exchange, what you are seeing in the app is a ledger entry of an IOU from a custodian.
The dollars can be withdrawn from a Chivo ATM and that gives all (including the unbanked) a chance to not have to trust Chivo for more than a small period of time.
I can't say with certainty what the best approach is, but transparency with the funds would definitely not hurt.
Correct. Just like with a bank, or with a custodial exchange, what you are seeing in the app is a ledger entry of an IOU from a custodian.
The dollars can be withdrawn from a Chivo ATM and that gives all (including the unbanked) a chance to not have to trust Chivo for more than a small period of time.
I can't say with certainty what the best approach is, but transparency with the funds would definitely not hurt.