The President of El Salvador, Nayib Bukele, announced on the national network on the night of Thursday, June 24, that the Government’s bitcoin (BTC) wallet will be available next September for all Salvadorans. It is a mobile application for iOS and Android that the inhabitants of the country can use to send bitcoins from one address to another with immediate convertibility to dollars, if the user so wishes.
Salvadorans will be able to download the application from Google Play or Apple Store and, when registering, each citizen you will receive a reward of USD 30 in BTC. “It will be the only balance in bitcoin that a person will have who does not want their funds in bitcoin, but in dollars,” Bukele said during the broadcast.
The application that the Government decided to call “Chivo”, (great or well done in Salvadoran slang) will work anywhere in the country with an internet connection from a mobile device.
“It will not be necessary for you to have a data plan or balance on your cell phone, simply if there is an Internet signal you can use the wallet either for transactions, to pay, receive money, receive remittances or check the account statement. And you will not need credit, only an Internet signal in the area, “said the president without specifying whether the State will enable Wi-Fi throughout the country.
Bukele also explained that the government’s bitcoin wallet has two accounts linked, one of which reflects the available balance in bitcoin and the other in dollars. That will allow Salvadorans accept payments in BTC, but will have the option to receive it in dollars, thanks to the immediate convertibility that the platform will guarantee, according to Bukele.
“It means that if a user goes to a pharmacy and wants to pay in BTC, they can do so, but the pharmacist can receive their payment in dollars because they will indicate it in the wallet. So the pharmacy, or any merchant, will not be upset as they did not receive their payment in bitcoin because that is completely optional for them. Nor will it affect consumption because he will be fully entitled to pay with BTC “.
Nayib Bukele, president of El Salvador in the national chain.
President Nayib Bukele said that every Salvadoran who downloads the Government’s bitcoin wallet will receive a reward of USD 30 in BTC. Source: Twitter Presidential House.
To register on the Government platform, Salvadorans must enter their personal identification number, as well as their telephone number. Then will have to undergo a facial recognition check and a verification process through a call center in order to create the account.
The government bitcoin wallet will be compatible with other similar applications and its use will be optional, as each citizen will be able to use any of the BTC wallets that are available in the world, as indicated by the head of state. «The Government wallet will be compatible with all the others in the world and in it we will have an application for people and one for companies. They will work the same, only that the person will be registered in one and the companies will be registered in the other, “he added, without specifying whether users must provide personal data to use these applications.
Bukele: “There is no article 7 of the Bitcoin Law without an 8 or 12”
The Salvadoran president also offered details of the Bitcoin Law. He said he did so because it was necessary to confront what he classified as a “dirty campaign” against the measure. Added that The legislation will go into effect on September 7 and that it seeks to connect the country with the rest of the world, attract foreign exchange, investment and tourism. In short, “what you want is to boost the economy.”
He insisted that no Salvadorans will be obliged to receive bitcoin if they do not want to, nor will bank accounts in dollars be converted to BTC. Therefore, wages and pensions will continue to be deposited in dollars.
Bukele said that through the government platform Salvadorans will be able to deposit dollars or bitcoin and make cash changes at ATMs and affiliated points. Source: Twitter Presidential House.
Also, the president cleared up doubts about article 3 of the Law, which states that all prices can be reflected in bitcoin. In this regard, he said that there will be no obligation to do so, unless the merchants prefer. The same happens with taxes, which can be paid with BTC or dollar, according to the preference of each one.
Regarding article 6, he said “for accounting purposes the dollar will be used as the reference currency. “This is a question that has worried the banks and some companies. Bitcoin will not be used for accounting purposes. ‘
The president said that his opponents have used Article 7 to confuse the population. This indicates that every economic agent must accept bitcoin as a form of payment when it is offered to him by whoever acquires a good or service.
“By taking it out of context and referring only to this article, it seems that everyone is obliged to accept BTC as a form of payment, and therefore receive it, but it is not, because everything is optional. What is more important is that this article 7 cannot be taken out of the context of 8, or 12. Above all, because in article 8 it is said that the State will provide alternatives that will allow the user to carry out transactions in BTC, as well as have automatic convertibility of bitcoin to dollar ”.
Nayib Bukele, president of El Salvador in the national chain.
He added that section 12 is key to understanding the Law as it indicates that those who do not have access to the necessary technological tools that allow them to carry out transactions with bitcoin are excluded from article 7.
In any case, as CriptoNoticias has recently reported, the Supreme Court of El Salvador will judge whether the Bitcoin Law goes against the constitution. This is due to the fact that a petition was introduced before the Constitutional Chamber of the highest Salvadoran judicial authority, it indicates that the legislation passed expeditiously by 62 of the 84 deputies of the country does not have social support nor was it consulted with the people.