Every adult citizen in El Salvador will get $ 30 worth of bitcoin when they download and register the government’s cryptocurrency app, President Nayib Bukele announced late Thursday when he revealed details about how the nation will make Bitcoin the first to be legal Would make means of payment.
Bitcoin will soon become legal tender in El Salvador
AFP via Getty Images
In a national address on Thursday, Bukele announced that the “Bitcoin Law” would come into effect on September 7th.
Addressing widespread concerns that the use of Bitcoin – which will continue to use the US dollar as legal tender – could become mandatory in El Salvador, the President assured citizens that “the use of Bitcoin will be optional”, reported Reuters.
Salaries and pensions will continue to be paid in dollars, he said, and anyone paid in Bitcoin “can choose to have it automatically in dollars”.
Bukele said the introduction of Bitcoin as legal tender was not the same as the introduction of the dollar by El Salvador and the bank accounts that converted Colón’s former currency into dollars.
Bukele reiterated that one of the main driving forces behind the law is helping people send remittances back to El Salvador, as payments typically come with high transaction and commission costs.
The US dollar has been the official currency in El Salvador since 2001, to which Bitcoin will join and not replace as legal tender. The decision to adopt cryptocurrency as legal tender – a world first – met with both concern and excitement around the world. For enthusiasts, it was a sign of the future, and numerous lawmakers around the world have expressed their support for promoting the widespread use of digital currencies. Meanwhile, skeptics expressed concerns about the transparency, the environmental impact of Bitcoin and its practical implementation on site. El Salvador’s ambitious three-month schedule for implementation of the law, which Bukele’s statement said will remain unchanged, was jeopardized in mid-June when the World Bank rejected the country’s request to implement cryptocurrency as legal tender, citing environmental and financial crime risks.
Bukele’s presentation in Spanish was streamed:
El Salvador is making history as the first country in the world to create Bitcoin as legal tender (Forbes)
Tanzania Considering Crypto – And Promoting Bitcoin – As Nations Line Up Behind El Salvador To Support Decentralized Finances (Forbes)
El Salvador gives every citizen $ 30 in Bitcoin to download the Govt Crypto App (Gizmodo)