Every adult citizen in El Salvador will receive $30 in bitcoin, providing they register their mobile app, known as Chivo, with the government.
Bitcoin advocate and president of El Salvador, Nayib Bukele, recently unveiled proposals to make bitcoin legal money.
He said that every user of the state-sponsored cryptocurrency wallet, Chivo, would be rewarded with $30 in free Bitcoin.
President Bukele’s Bitcoin Address
During his broadcast speech on Thursday, the nation’s 39-year-old president made the statement, saying that when El Salvador begins recognizing bitcoin as legal currency, it will have a profound impact on the region.
During the hour that Bukele spent attempting to explain why he was spending so much on developing the nation of El Salvador’s capabilities to issue bitcoin as legal currency, the country became the first in the world to regard bitcoin as money.
During the unveiling of the new software, the president showed off graphic illustrations of how the program will enable users to use their bitcoin to buy U.S. dollars or use bitcoin as collateral.
This unannounced software, which hasn’t been released yet, is said to be making an appearance on iOS and Android in the near future, and it will allegedly be capable of working with other bitcoin wallets.
According to speculations, however, the Salvadoran government may start paying salaries and pensions in bitcoin in the future, but President Bukele squashed such suspicions by assuring Salvadorans that they would still be able to access dollars.
Most likely, the stories originate from the 2001 shift to U.S. dollars in El Salvador when everyone’s bank accounts had to be altered.
Why Bitcoin for El Salvador?
70% of El Salvador’s population has no bank account, and 20% of GDP is provided by the money that undocumented workers send home. The Strike app has onboarded over 20,000 new El Salvadorians every day since it was launched in March.
Strike drafted the law, a collaboration with the government of El Salvador began.
Populist Nuevas Ideas party recently scored a landslide victory, with Bukele’s followers making up a significant portion of their support. Criticizing the new legislature for removing the attorney general and senior judges is fair, but not really new.
El Salvador’s national police and a public information agency lost their government funding as a result of the action, with which money was then transferred to civil society organizations.
Of all the countries in the globe, just a few utilize the U.S. dollar as their primary currency. El Salvador’s recent changes to its judicial system have contributed to increased tensions between the country and the US.