Nayib A. Bukele, the president of El Salvador, disclosed at a press conference the plans to offer $30 in bitcoin to every adult citizen who signs up for a bitcoin web wallet in the state.
“The government will create its own bitcoin wallet called Chivo (slang for “cool” in El Salvador). The funds will be deposited into the account of any citizen who downloads it and registers as a user with their phone number and ID number.” Nayib Bukele President of El-Salvador
The president claimed that using the bitcoin cryptocurrency as a legal tender would benefit the country's economy as it will help attract investments, boost consumption, and cut the costs of sending remittances for millions of Salvadorans abroad. He added that the cryptocurrency would be optional as it would be used alongside the Dollars.
“Bank accounts in dollars would remain in dollars. Salaries and pensions would continue to be paid in dollars. The government will provide training for businesses on bitcoin transactions and seek to improve internet and mobile phone penetration to encourage cryptocurrency’s use. Businesses that are technologically unable to receive e-payments would be excluded from the law.” Nayib Bukele
Salvador is the first country to make bitcoin its legal tender. Although the move has been criticized by various bodies such as IMF, the World Bank, the global crypto community, and certain influential individuals has applauded the move.
El Salvador in focus:
GDP: $27.023 billion compared to Panama's $66.801 billion in 2019
Population: 6,543,553 compared to Panama's 4,246,439 in 2019
GDP per capita: $4,187 compared to Panama's $15,731 in 2019