El Salvador’s legislative assembly earlier this week approved the creation of a $ 150 million bitcoin trust to facilitate the exchange of bitcoin (BTC) for US dollars while promoting the development of crypto infrastructure and services across the country.
President Nayib Bukele, who launched the controversial legislation in June, assured the population on several occasions that choosing Bitcoin instead of US dollars will remain a matter of choice, and the newly formed trust is set to help him be Keeping promises.
Funds from a $ 500 million loan for economic recovery reallocated
“Initially, the fund will be $ 150 million with the possibility of increasing it,” Economy Minister María Luisa Hayém Brevé told elsalvador.com, while commenting on the concerted initiative to ensure that Salvadorans offset their crypto exposure can.
The El Salvador Development Bank (Bandesal) has been tasked with overseeing the operation of the trust. The $ 150 million will be drawn from the country’s $ 500 million loans to the Central American Bank for Economic Integration (CABEI), which were originally intended to support the economic recovery of small and medium-sized businesses.
While $ 150 million will go to the Bitcoin Trust, another $ 53.3 million is earmarked for the implementation of the plan. Of these funds, the government has allocated $ 23.3 million to launch crypto ATMs, while $ 30 million is earmarked for promoting the use of El Salvador’s official Bitcoin wallet, called Chivo.
FUD is natural
In addition to disapproval and warnings on an international level, Bukele’s controversial move to recognize the world’s largest cryptocurrency as the national currency on September 7 was also received locally with a good deal of uncertainty.
In light of the anti-Bitcoin protests in the country’s capital ahead of legalization, the Salvadoran Association of International Freight Companies (ASTIC) called on the state to amend Article 7 of the Bitcoin Act, which obliges all companies and individuals in the country to do so Accept cryptocurrency as a means of payment.
According to Hayém Brevé, doubts and fears surrounding the use of the new currency are only natural as the initiative that is bringing El Salvador to the forefront of financial technology is new and unexplored.
“We have several teams in the region that show the population how to use the Chivo wallet. We have developed a user-friendly application so that all Salvadorans can learn how to use this cryptocurrency, ”she added.