A trust to facilitate Bitcoin / dollar exchanges
The Salvadoran president seems ready to do anything to reassure the population, a few days before the entry into force of the famous Bitcoin law scheduled for September 7. After Nayib Bukele said that no one would be forced to use BTC in El Salvador, the government wants to go even further.
According to a local news site, members of the Legislative Assembly’s Finance Committee approved, on a proposal from the government, the creation of a trust worth $ 150 million in BTC. The purpose of this trust is to facilitate exchanges between Bitcoin and the US dollar, which remains the other legal tender currency in El Salvador.
The Minister of the Economy, María Luisa Hayém Brevé, raised the possibility of increasing the value of the trust if necessary. The primary objective is to reassure the population, who seems skeptical and worried, as evidenced by the few anti-Bitcoin demonstrations in the country.
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The trust will distribute a bonus in BTC to the inhabitants of El Salvador
The trust in question will make it possible in particular to fulfill a promise made by President Bukele, that of giving a bonus worth $ 30 to all residents wishing to use BTC in the country. On the other hand, it has been confirmed that this bonus will be paid in BTC on the Chivo electronic wallet and not in dollars.
Chivo is the official wallet created by the Salvadoran government in order to be able to use BTC in the country. It will allow the exchange with the dollar without commission or transaction fees. While it will not be the only authorized crypto wallet, its use will be strongly encouraged in the country.
The Salvadoran government, and more particularly its President Bukele, probably did not foresee such mistrust on the part of the population. After a month of June full of promises, when there was talk of salaries paid in BTC or the creation of a national stablecoin, the skepticism of some Salvadoran citizens took over.
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The Finance Committee of the country’s Legislative Assembly ignored the distrust of some sections of the population regarding the adoption of BTC as legal tender. It is especially retirees and veterans who are worried, fearing that their retirement will be paid in Bitcoin and more in dollars.
Some protesters chanted the slogan “No al bitcoin”, which has also become a popular Twitter hashtag in recent days. The Salvadoran government accuses economic institutions like the IMF and the World Bank, which refused to help El Salvador, of influencing the discontented with their anti-bitcoin rhetoric.
Still, protesters fear that the volatility of BTC will further worsen the poor economic situation of the country, which has had no national currency for twenty years after adopting the US dollar.
Local press reported that some bitcoin ATMs had been vandalized and that businesses were setting aside 20% of their profits to offset volatility. Will the creation of the trust reassure the worried population? Beginning of response on September 7.
👉 On the same subject – Salvador: residents skeptical about the adoption of Bitcoin (BTC)
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About the author: Benjamin Allouch
Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. Today, I am an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.