Despite some resistance and criticism of the Bitcoin law in El Salvador, the president wants to put the Bitcoin law into effect in September.
It has been talked about for a long time and now the time has finally come: Nayib Bukele, El Salvador’s President, expressed on the upcoming plans to implement the Bitcoin law on September 7th. Bukele also talked about the Chivo wallet application, which is available for download that same day.
The so-called Chivo Wallet will be available to the citizens of El Salvador for the safekeeping of Bitcoin. President Bukele mentioned that this includes a feature that enables users to automatically convert their Bitcoin to dollars.
Thanks to this automatic function, any user who does not want to withdraw their Bitcoin immediately can take cash from the wallet at any time. But later on, they can always take cash from the government-run ATMs.
In order to educate people about the technical implementation and handling, 50 branches are being set up throughout El Salvador. Here you will learn how to use the ATMs and wallets. The president also stated that there will be a 24-hour withdrawal option for users without incurring any fees.
The President’s first announcement of this Chivo wallet came in June. As stated by the President of El Salvador. Every adult citizen who downloads the Chivo wallet application will receive $ 30 worth of Bitcoin.
President Bukele says another benefit of this Bitcoin project is that it will save the money wasted on transfers, he points out.
He says El Salvador typically spends more than $ 400 million a year on transfer fees alone. Therefore, it would be beneficial for people if they could save such a large sum. You also have the advantage that you don’t have to carry cash around with you. So it’s more practical and safer.
Also, citizens of El Salvador abroad can use the wallet application to send money to their friends and family back home.
It is also important to mention that it is not mandatory to accept or use Bitcoin, it is optional for the population.
With this new development, people in El Salvador will be able to download the Chivo Wallet App from September 7th.
On the same day, the Bitcoin law will also come into force in the country. Those who have access to the benefits of this venture are those who have previously registered with the Chivo Wallet.
This project met with a lot of resistance after President Bukele passed the Bitcoin law last June. For example, the World Bank refused to help finance the introduction of Bitcoin in El Salvador.
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