The fund seeks to invest $ 23.3 million in the installation of Bitcoin ATMs and $ 30 million in an airdropping to citizens who install the wallet “Chivo”.
El Salvador’s initiative to adopt Bitcoin as legal tender received a boost after the country’s lawmakers created a $ 150 million fund through legislation in the National Assembly.
The bill that created the Trust, a fund intended to ensure that developments aimed at the use of Bitcoin in the country are on track, was voted on by 64 lawmakers. The vote on 31 August also saw 14 officials oppose the creation of the fund.
According to Finance Minister María Luisa Hayém Brevé, the initial fund will contain $ 150 million from the country’s $ 500 million reserve for economic development.
However, given the changing situation, the government may decide to increase this amount, a local media said, citing the Minister of Finance.
The government plans to spend $ 23.3 million on the cryptocurrency distributors project, with more than 200 BTC distributors already installed in the country. Another $ 30 million is set aside to entice citizens to use the dubbed Bitcoin wallet “Chivo”.
The official launch of “Chivo” is only a matter of days, and it is expected that the fund will provide an essential base for users who are starting to convert their BTC to US dollars.
The public development Bank of El Salvador (BANDESAL) will administer the fund, and several officials will be responsible for ensuring the success of the launch.
El Salvador’s Bitcoin law was passed on June 8, 2021 and will come into force on September 7. The roll – out of adoption plans, however, has been met with increasing opposition from the population, especially with regard to issues related to adoption by merchants.
But government officials, including President Nayib Bukele, have taken steps to reassure citizens that individuals and businesses will not be forced to accept Bitcoin.