The Salvadorian Parliament to approve the $150M Bitcoin fund
Industry News
El Salvador is going to become the first country where digital currencies are officially supported by the government. The Salvadoran Parliament has already adopted Bitcoin as an official payment option throughout the country, and now it’s time for the next step – the government approves the launch of a Bitcoin trust worth $150 million.
The principal aim of the trust lies in guaranteeing the exchange between BTCs and US dollars. Bandesal, the Development Bank of El Salvador, heads the trust. Funds are taken from the $500M loan given by the Central American Bank for Economic Integration (CABEI).
$53.3 million more was taken to support the integration of cryptocurrencies. The government is going to use $23.3 million to install Bitcoin ATMs throughout the country and $30 million more to motivate citizens to use Chivo digital wallets. Every Salvadoran citizen who’s completed the registration in the app is expected to receive $30 for free.
The Salvadoran Minister of Economic Affairs, Maria Luisa Hayem, comments on the current situation in her Twitter account: “The project of Bitcoin implementation provides citizens with easier access to financial services and makes El Salvador a promising place for investments.”
In the meantime, 20% of inhabitants totally support the initiative, while other citizens are afraid of innovations due to the lack of knowledge.
El Salvador is among the economically progressive countries, as the inflation rate reached only 0.2% in 2020. As for the GDP growth, the country has overrun France, Italy, Great Britain, and some other developed countries during the pandemic period.
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