El Salvador’s President Nayib Bukele said at a press conference that every adult in the country. That is, every citizen who has reached the age of majority, who installs the state-developed Chivo crypto wallet application, will receive $ 30 in Bitcoin. Likewise with the digital yuan lottery run by the Chinese government.
A step-by-step guide to using the wallet was televised. For citizens, the conversion of Bitcoin into US dollars will also be open, if the owner so requests. In addition to storage, the Chivo wallet will provide citizens of El Salvador with access to payments and transfers using QR codes. As well as exchange operations with Bitcoin itself within the platform. To receive the cryptocurrency, the user will have to verify their identity, Bukele announced.
According to the president, the free distribution of digital coins carried out in order to popularize the use of Bitcoin and a crypto wallet. At the same time, according to the president, it will be possible to use Bitcoin at will. Anyone who doesn’t want this will not receive Bitcoins. If someone receives Bitcoins, they can choose an automatic dollar deposit.
Bukele says the app will work wherever there is a cellular signal. He added that the law on recognizing Bitcoin as a means of payment will come into force on September 7.
According to estimates, the authorities of El Salvador will have to buy Bitcoins for $ 195 million. Since the number of adults in the country is 6.5 million people.
Analyst Willy Woo expects that thanks to the distribution of Bitcoin to the residents of El Salvador, the global user base of the cryptocurrency will at one point grow by 4.5 million people, or 2.5%.
Steps to implement cryptocurrency in El Salvador
The American company Athena announced plans to install 1,500 crypto ATMs in El Salvador so that the country’s residents can buy cryptocurrency and exchange it for regular money.
El Salvador is the first country in the world to legally recognize Bitcoin as an official means of payment. The corresponding decision made the country’s parliament on June 9.
According to the law, prices in El Salvador can be set in Bitcoin, and taxes can also be paid in cryptocurrency. The exchange of Bitcoins for dollars, also the currency of El Salvador, will not be subject to capital gains tax, while Bitcoins will be exchanged at market rates.
Bukele argues that the law aims to support those who don’t have access to banking services. According to the president, if firms and sellers not obliged to accept Bitcoins, this step would be discriminatory. He explained that people who do not use banking services may not have other means of payment.
El Salvador’s president also said that for Bitcoin mining the country will use the geothermal energy of volcanoes.
New wells discovered in the country, which can provide additional capacity of 95 MW. Even such resources for Bitcoin mining can bring a lot of income to the country. The proceeds from the sale of Bitcoins will be spent on the development of the state’s infrastructure, namely on the construction of new schools and pharmacies. Note that some Latin American countries are also ready to follow the example of El Salvador to legalize bitcoin. Paraguay, Panama, Brazil, Mexico and Argentina have begun to consider such an opportunity.