El Salvador’s President NayibBukele announced that the central government’s bitcoin (BTC) wallet would be available next September. It will be through a mobile application available for IOS and Android. Bukele promised that with the single registration, Salvadorans would receive $30 in bitcoins.
It is a reward for the simple fact of registering; the bonus will be awarded in bitcoins. In this regard, Bukele said that if it was a person who prefers to keep their funds in dollars, this promotional payment would be the only balance they have in bitcoins. “Chivo” is the name of the app that Salvadorans must download to access the bitcoin portfolio created by the government. As it is a mobile application, the president of the country assured that it would work from any device and from anywhere in the country; only a connection to WI-FI will be needed.
To do this, the state has a plan to enable the internet throughout the country. On the other hand, the platform guarantees immediate convertibility; for this, it will have two accounts linked; one in bitcoins and the other in dollars. This will give the user the option to accept payments in BTC but receive it in dollars.
The consumer will be fully entitled to pay in bitcoins, and the merchant will have the opportunity to receive it in dollars because the convertibility is immediate. Furthermore, this government wallet will be compatible with any other wallet in the world.
El Salvador, this month became the first country in the world to pass a law that allows the adoption of bitcoin as a legal tender measure that will come into force in September of this year. On this Law, Bukele affirmed that it was necessary legislation to approve otherwise “a dirty campaign” against the legal tender of bitcoin that would have expired. The Law enters into force on September 7, with the firm intention of attracting investors to the Central American country, foreign exchange, and tourism; in short, it energizes the economy.
It is important to note that if someone does not want to receive bitcoins, they simply will not receive them. Each person will have the option of using the currency that he decides, be it real or digital. Also, Bukele denied that the dollar accounts would be converted to bitcoin accounts.
Since the approval of bitcoin as a legal tender in El Salvador was announced, remittances have quadrupled, and it is expected that once the law enters into force, the sending of remittances will also increase as this is one of the main objectives of this legislation, according to the president of the country. In the Salvadoran Spanish variation, the word goat, the name chosen for the government purse application, is to refer to something great or well done.