The authorities of El Salvador favoured the construction of a Bitcoin Trust costing up to $150 Million. The role of the trust for converting Bitcoins to US dollars can assist the local population in balancing their exposure to cryptocurrency. The move has been taken before the government’s utilization of BTC legally.
Preparing for the Bitcoin adoption
The El Salvadoran Legislative Assembly will grow the infrastructure through constructing a Bitcoin Trust costing nearly $150M. The trust will serve through converting Bitcoins into the United States dollars before the commencement of the country’s scheduled adoption of Bitcoin legal tender on 7th September. The authorities sanctioned the latest bill by favouring it with a considerable majority of 64 votes, whereas 14 votes were against it. El Salvador’s Development Bank (Bandesal) will be given the charge of the trust. The Economy Minister of the country ‘María Luisa Hayém Brevé’ stated that the authorities could add more into the fund’s amount if it is considered necessary by them.
It is noteworthy that out of a $500M loan (formerly granted to be used in economic recovery), $150M would be allocated for the BTC adoption. Notwithstanding the guarantee of the potential financial advantages of Bitcoin, President Bukele sensed some disorder in the country recently. It has been reported that people gathered in the streets against the authorities’ decision for accepting BTC as a legalized cryptocurrency. Hayém Brevé elaborated that doubt and fear are usual among the citizens because the initiative is unexplored and latest.
Nonetheless, she appreciated the country for being at the forefront regarding financial technology by launching Chivo Wallet to permit the residents to transfer their Bitcoin to the US dollars automatically. She expressed that various groups are allocated in the country to specifically demonstrate the utilization of the aforementioned wallet. An application has also been developed to educate El Salvadoran citizens about cryptocurrency usage.
El Salvador became famous due to BTC
Although the possible impact of adopting Bitcoin legally on the country is unknown even now, one thing is guaranteed that the step has expedited the fame of the country. In June, when the official decision for accepting Bitcoin was announced by the president, the Google searches regarding El Salvador touched the sky. The searches got the latest yearly high score which is indeed a significant achievement on behalf of such a small nation that has been confronting high rates of poverty and corruption for years.