In an effort to facilitate the use of bitcoin in making payments, El Salvador’s president has announced that the government will airdrop $30 worth of bitcoin to citizens.
The news, which was announced at a press conference today, noted that only adult citizens who are registered users of the government-issued crypto wallet app, Chivo, will be eligible for the airdrop.
El Presidente @nayibbukele desmiente los argumentos de los opositores sobre el uso del #Bitcoin en el país. Nosotros no le estamos mintiendo a los salvadoreños como sí lo hicieron ellos cuando dolarizaron nuestra economía. pic.twitter.com/FuD5SXJg5r
— Casa Presidencial (@PresidenciaSV) June 25, 2021
To foster inclusion, the president revealed that the El Salvadoran government has partnered with major cell phone operators across the country to create a national bitcoin wallet option that works independently of banks.
Therefore, since more than 70% of El Salvador’s population has no access to banks, this national bitcoin wallet option will allow registered users to receive the $30 bitcoin airdrop on their cell phones and use it without any connection to banks.
Bitcoin Law Goes Live in September
In addition to the news of the airdrop, President Bukele disclosed that El Salvador’s much-celebrated Bitcoin Law will go live on September 7.
El Salvador made headlines a few weeks ago when it announced that it had adopted bitcoin as an official legal tender.
While several crypto enthusiasts have touted the idea of making an altcoin a legal tender in the country, President Bukele clarified that the country will not be entertaining the idea.
El Salvador Faces Backlash
Several financial analysts have criticized El Salvador’s decision to make bitcoin a legal tender due to its extreme volatility.
While some commented on just the adverse effects of the decision on the country’s economic stability, others outright called the decision “stupid.”
Analysts at JP Morgan pointed out that the country’s decision will compromise its negotiations with the International Monetary Fund (IMF).
Sadly, when El Salvador contacted the World Bank to help analyze the technical aspects of implementing bitcoin, the financial body said that it did not want to be affiliated with the project.
However, the Central American Bank for Economic Integration (CABEI) stepped up and agreed to support the country in its Bitcoin implementation project.
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