El Salvador: Government offers $30 in bitcoin to citizens

El-Salvador plans to offer $30 in bitcoin to every adult citizen who signs up for a bitcoin web wallet in the state.

Inclusion Times
Inclusion Times

Nayib A. Bukele, the president of El Salvador, disclosed at a press conference the plans to offer $30 in bitcoin to every adult citizen who signs up for a bitcoin web wallet in the state.

“The  government  will  create  its  own  bitcoin  wallet  called  Chivo (slang for “cool”  in  El  Salvador).  The  funds  will  be  deposited  into the  account of  any  citizen  who downloads  it  and  registers  as  a  user  with  their phone  number  and  ID  number.”  Nayib Bukele President of El-Salvador

The president claimed that using the bitcoin cryptocurrency as a legal tender would benefit the country's economy as it will help attract investments, boost consumption, and cut the costs of sending remittances for millions of Salvadorans abroad. He added that the cryptocurrency would be optional as it would be used alongside the Dollars.

“Bank accounts in dollars would remain in dollars. Salaries and pensions would continue to be paid in dollars. The government will provide training for businesses on bitcoin transactions and seek to improve internet and mobile phone penetration to encourage cryptocurrency’s use. Businesses that are technologically unable to receive e-payments would be excluded from the law.” Nayib Bukele

Salvador is the first country to make bitcoin its legal tender. Although the move has been criticized by various bodies such as IMF, the World Bank, the global crypto community, and certain influential individuals has applauded the move.

El Salvador in focus:

GDP: $27.023 billion compared to Panama's $66.801 billion in 2019

Population: 6,543,553 compared to Panama's 4,246,439 in 2019

GDP per capita: $4,187 compared to Panama's $15,731 in 2019

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