Earlier this year, El Salvador president Nayib Bukele announced that each of the registered citizens of the nation’s crypto wallet app will receive US$30 in Bitcoin for free.
“The wallet app will work anywhere with a cell connection, and you won’t have to have a cell plan for the app”, shared President Bukele in a press conference.
The official bitcoin wallet is called Chivo, and citizens of El Salvador can download and use it anytime. Bukele also highlighted that the Chivo wallet will not incur fees or commissions for transfers, and it will not take a cut for converting BTC to USD and vice versa.
El Salvador’s Congress has also approved Bukele’s proposal to embrace cryptocurrency, which makes El Salvador the first country in the world to adopt bitcoin as legal tender.
From 7 September 2021, the law making Bitcoin a legal tender in El Salvador will take effect. However, the adoption and usage of bitcoin is optional.
Infrastructure being built ahead of country’s Bitcoin adoption
According to Bukele, there will be 200 ATMs and 50 branches capable of converting Bitcoin into US dollars from September 7.
The president said that residents will have the opportunity to convert their crypto to fiat immediately after Bitcoin is recognized as legal tender. He also said that there will also be 50 branches capable of withdrawing or depositing fiat for residents to hold crypto or immediately liquidate their salaries.
In a separate tweet, the president also mentioned that “Chivo ATMs” will eventually be “everywhere” and allow El Salvadorans to withdraw cash 24 hours a day without paying commissions on their holdings, but no one will be forced to use them.
Bukele said those not interested in using BTC would be able to exchange the BTC they receive for cash at any of those locations. He also reiterated that the U.S. dollar will continue to be in circulation.
Featured Image Credit: EL CEO