The fund plans to put $ 23.3 million into the installation of Bitcoin machines, and another $ 30 million is earmarked for distribution to citizens who install the “Chivo” wallet.
El Salvador’s efforts to introduce Bitcoin as legal tender received a boost after the country’s lawmakers set up a $ 150 million fund in the National Assembly.
The bill to create the Trust, a fund designed to ensure that developments on the use of Bitcoin in the country are on track, has been passed by 64 legislators. In the vote on August 31, 14 officials also spoke out against the establishment of the fund.
Treasury Secretary María Luisa Hayém Brevé said the trust will initially contain $ 150 million from the country’s $ 500 million reserve earmarked for economic development.
In light of other developments, however, the government could increase the amount, according to a local news magazine, citing the finance minister.
The government plans to pour $ 23.3 million into the crypto ATM project, with over 200 BTC machines installed across the country. Another $ 30 million is earmarked to encourage citizens to use the Bitcoin wallet called “Chivo”.
The official launch of “Chivo” is only a few days away, and the fund is expected to provide an important foundation for converting BTC to US dollars.
El Salvador’s state-sponsored development bank (BANDESAL) will manage the fund, with various officials responsible for ensuring the success of the launch.
El Salvador’s Bitcoin Law was passed on June 8th, 2021 and will come into effect on September 7th. However, the introduction of the adoption plans is meeting with increasing resistance from the population, particularly with regard to issues of adoption by traffickers.
However, government officials, including President Nayib Bukele, have tried to reassure citizens that individuals and businesses will not be forced to accept Bitcoin.