El Salvador, a country in Central America, disclosed that it has decided to offer $30 worth of Bitcoin to the people in the country who decide to create accounts with a state-sponsored wallet. This is the greatest step towards strengthening the BTC in the country. On Sept. 7, El Salvador will make history as it becomes the first country in the world to adopt bitcoin as legal tender.
The adoption of BTC as a legal tender will start a new era of growth for the struggling economy of Latin America. This decision will also open a new frontier for bitcoiners planning to test their economic and social theories. Bitcoin will not just be a companion currency to the U.S. dollar, but a foundation of the nation’s endeavors to improve and digitize its economy.
President Nayib Bukele is planning to make El Salvador a bitcoin mining hub as well as a center for blockchain software development and a heaven for the crypto-rich. The latest decision of the country to offer citizens Bitcoin after creating an account with Chivo, a cryptocurrency wallet sponsored by the state is the new development in this regard. The app will also enable users to alter Bitcoin to US dollars.
Furthermore, Finance Minister Alejandro Zelaya of the country stated that the government will allocate up to $120 million in the value of Bitcoin in this way, which transforms into 4 million accounts. The Legislative Assembly of El Salvador passed a bill on June 8 that sets out Bitcoin as legal tender in the country along with the US dollar.
Moreover, the bill was suggested by the country’s president Nayib Bukele, who contends that making Bitcoin as legal tender will entice investments into the country. This decision will also make it easier for Salvadorans who work overseas to send remittances back into the country.