Topline Every adult citizen in El Salvador will receive $30 worth of bitcoin when they download and register the governmentâs cryptocurrency app, President Nayib Bukele announced late Thursday as he unveiled details on how the nation would become the first to make bitcoin legal tender .
Key Facts In a national address Thursday, Bukele revealed the âbitcoin lawâ would come into effect on September 7.
The president addressed widespread concerns that bitcoin use might become mandatory in El Salvadorâwhich will continue to use the U.S.dollar as legal tenderâreassuring citizens the âuse of bitcoin will be optional,â Reuters reported .
Salaries and pensions will continue to be paid in dollars, he said, and anyone being paid in bitcoin âcan choose to automatically receive it in dollars.â
Bukele said the adoption of bitcoin as legal tender would not be the same as when El Salvador adopted the dollar and bank accounts converted the former currency of colóns, to dollars.
Bukele reiterated that one of the key drivers of the law is to help people sending remittances back to El Salvador, as the payments typically suffer from high transaction and commission costs.
Key Background The U.S.dollar has been the official currency in El Salvador since 2001, which bitcoin will join, not replace, as legal tender.The decision to adopt the cryptocurrency as legal tenderâ a world first âwas met with both trepidation and excitement around the world.For enthusiasts, it was a sign of things to come, and numerous lawmakers around the world have expressed support for fostering widespread use of digital currencies.Skeptics, meanwhile, voiced concerns over transparency, the environmental impact of bitcoin, and the practicalities of implementing it on the ground.El Salvadorâs ambitious three month timeline to implement the law, which Bukeleâs statement suggests is unchanged, was imperiled in mid June when the World Bank rejected the countryâs request to help it implement the crypto as legal tender, citing risks to the environment and of financial crime.
Further Viewing Bukeleâs presentation, in Spanish, was streamed:
Further Reading El Salvador Makes History As Worldâs First Country To Make Bitcoin Legal Tender (Forbes)
Tanzania Considers CryptoâAnd Boosts BitcoinâAs Nations Line Up Behind El Salvador To Embrace Decentralized Finance (Forbes)
El Salvador to Give Every Citizen $30 in Bitcoin for Downloading Govt Crypto App (Gizmodo)
Robert Hart
I am a London-based reporter for Forbes covering breaking news.
Previously, I have worked as a reporter for a specialist legal publication covering big data and as a
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I am a London-based reporter for Forbes covering breaking news.Previously, I have worked as a reporter for a specialist legal publication covering big data and as a freelance journalist and policy analyst covering science, tech and health.I have a masterâs degree in Biological Natural Sciences and a masterâs degree in the History and Philosophy of Science from the University of Cambridge.
Follow me on Twitter @theroberthart or email me at [email protected] .