The Legislative Assembly of El Salvador has officially passed a legislation to create a $150 million Bitcoin fund.
The bill was approved on August 31 and will help to build the necessary cryptocurrency infrastructure across all of El Salvador. 64 functionaries of the assembly voted pro, and only 14 opposed the new draft. The Bitcoin Trust will also simplify the conversion of BTC into U.S. dollars, facilitating the widespread adoption of virtual currency.
The $150 million will be cut from the $500 million loan granted from the Central American Bank for Economic Integration (CABEI). El Salvador was given the amount as a helping hand for small and medium enterprises during the economic crisis the world is experiencing because of the pandemic.
Nayib Bukele, the president of El Salvador, wrote about Bitcoin in several posts on his official Twitter account last week. Bukele gave more details about the new Bitcoin law that will come into effect on September 7.
He accused the opposition of trying to scare people about the implementation of the most famous cryptocurrency but the president of El Salvador strongly believes that Bitcoin will have many benefits.
Residents will be able to download an application on their mobiles so they can receive payments in BTC or dollars. El Salvadorans who will download it will receive $30 equivalent in bitcoin and can send or receive remittances without any commission fees needed.
The government will not force anyone to receive BTC as a form of payment.
“A Salvadoran abroad will be able to send money INSTANTLY to their relative in El Salvador. You can send you #bitcoin (if you want) or you can send you DOLLARS, if you want. If you don’t want to, you can always go to the Western Union queue and pay commission. There is no problem.”
4.5 million adults in the country can use Bitcoin in their everyday life. Chivo is the digital wallet supporting the cryptocurrency, and more than 200 Chivo ATMs can be found all over El Salvador. Residents spend approximately $400 million in commissions for remittances, and the new Bitcoin law will avoid that.