“Nobody will have to accept Bitcoins if they don’t want to,” says El Salvador’s President Nayib Bukele. Accordingly, a relevant law will be amended before it comes into force in September. El Salvador has not had its own currency for 20 years and uses the US dollar instead. However, Bukele is committed to Bitcoin. Salvador Bitcoin
El Salvador was the first country in the world to make Bitcoin its official currency. At the beginning of June, the parliament controlled by Bukele passed a corresponding law in a fast-track process. The opposition party FMLN has then proposed a reform of the Bitcoin law in order to make its use non-compulsory. FMLN MPs voiced the Fear that salaries could be paid in Bitcoin instead of US dollars.
Cash gift via Bitcoin starter account
The government is providing US $ 120 million to set up Bitcoin starter accounts or “wallets”. “Upon registration, the person will receive $ 30 in bitcoins,” to promote the use of the cryptocurrency in the country, promises Finance Minister Alejandro Zelaya. “We hope to reach a maximum of four million wallets, that is, to cover $ 120 million, but I don’t think we will reach that amount. ” (https://apnews.com/b9ccf6385c9aa0d8d6440ef4d3d77953)
US $ 30 is roughly three times the average daily earnings in the Latin American country. According to Bukele, 50,000 people are already using Bitcoin in El Salvador. The virtual currency will enable transactions with “many advantages and without impairments” and “attract many investors and tourists“.
Lots of criticism
Critics like the Salvadoran economist Tatiana Marroquín point to the high volatility of Bitcoin and the risk of money laundering. Also be that Population not adequately prepared for the risk of speculation behind Bitcoin. The head of the Inter-American Development Bank, Mauricio Claver-Carone, doesn’t think Bitcoin will help with thatTo boost El Salvador’s economy.