according to Forbes Magazine:
“Adults In El Salvador To Get $30 In Bitcoin As Nation Unveils Details To Make Crypto Legal Tender”
Citizens have to download the government’s issued App to get the $30 in Bitcoin as El Salvador moves to make crypto legal tender in the country. President Nayib Bukele is implementing this new policy claiming that El Salvador is the first country to legalize cryptocurrency as legal tender in their economy even though the US dollar (USD) is still the main currency. Bitcoin (BTC) use will be optional according to Reuters reporting.
In 2001 the El Salvador government switched the former currency of colóns to the US Dollar. They are not switching the use of the US Dollar to using Bitcoin or cryptocurrency, but rather allowing for the option to use Bitcoin and crypto in the economy. The government will continue to pay employees in USD and allow some employees who get paid in BTC from other sources to convert it to USD.
Bukele stated that one of the key drivers of the new law is to help people sending money back to El Salvador from other countries, as the payments typically suffer from high transaction and commission costs. The El Salvador App will allow for conversions to USD quicker and less costly.
NOTE: The editor of this article has recommended a decentralized wallet rather than government-controlled “Centralized” wallets. With a decentralized wallet, you are in complete control of your funds and this type of wallet has less chance of being shut down or hacked, or reviewed by the centralized issuer of the wallet.
It is interesting that when El Salvador’s government requested help from the World Bank to implement the new currency, the bank refused. So the government went about it themselves. President Bukele went ahead with the process and expects full implementation in as little as three months. So with implementation, by August of 2021, people will have the ability to download the government app and use crypto and crypto debit cards in transactions in everyday life.
Bukele’s presentation, in Spanish
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