Bitcoin (BTC) will become a legal tender in El Salvador officially on September 7, and the government is now betting big on the cryptocurrency.
El Salvador Sets Up A $150 Million Bitcoin Trust Fund
The El Salvador government has shown its commitment to Bitcoin after setting up a $150 million trust fund. The trust fund was approved by the finance commission of El Salvador’s Legislative Assembly, and it is expected to be used to support the country’s plan to make BTC a legal tender.
El Salvador set history as the first country in the world to adopt the leading cryptocurrency as a legal tender. The proposal was approved a few months ago, but it will come into effect in less than a week.
El Salvador’s Diario de Hoy newspaper has now reported that the government has set aside $150 million to help it with its Bitcoin adoption. According to the publication, the government could increase the money in the trust fund if the need arises.
The government will also launch Chivo, its official Bitcoin wallet, on September 7. While using the wallet and Bitcoin is an option, those who download and use the wallet will receive $30 in BTC from the government. According to the legislature, the $150 million allocated in the Bitcoin trust fund would help in sharing the $30 bonus to citizens who sign up for the Chivo wallet.
The adoption has also picked up steam, with the El Salvador government installing over 200 Bitcoin ATMs across the country. Bitcoin’s price has been quiet in recent days, with the leading cryptocurrency trading just above $47k per coin.
BTC is down by less than 1% in the past 24 hours, failing to surpass and stay above the $48k resistance level for the third consecutive day.
Not Everyone Is Onboard
Not all El Salvadorians are on board with the government’s plan to make Bitcoin a legal tender. There have been protests in El Salvador in recent days s some people are not comfortable with the idea of having BTC as a legal tender.
The protests haven’t deterred the government from its mission. Bitcoin’s status would be established as a legal tender in El Salvador as the government’s belief in the cryptocurrency is strong.