The President of El Salvador, Nayib Bukele, offered a $ 30 bonus in Bitcoin for Salvadoran citizens who open electronic wallets. With the aspiration of putting into practice and strengthening the so-called Bitcoin Law, the first president of the Central American country offered this incentive.
To access that amount of satoshis, those interested will have to open an account on the storage platform opened by the government. Opening a user in this wallet service requires personal data, as well as data from their identity documents. The name of this government application is Chivo, it is a word that in Salvadoran slang determines that everything is fine.
Reward delivery in the world of cryptocurrencies is very common. From companies that want to promote their digital currencies or storage applications, they usually give gifts. With this, it seeks to attract new users, which is the ultimate goal. This modality is now applied by the national State of El Salvador.
The wallet of the Government of El Salvador is called Chivo. 🇸🇻😎
These are the steps you must follow once you have downloaded it:
✔️ You must register with your phone number and DUI
✔️ You have facial recognition or a verification through the call center to create the account pic.twitter.com/aDQhxBSB7e
– Presidential House (@PresidenciaSV) June 25, 2021
How do Salvadorans see the Bitcoin bonus they will receive from the government?
Beyond the fact that Salvadorans want to receive the Bitcoin bonus, many of them do not agree with the project in general lines. The propaganda of the detractors of cryptocurrencies mainly affects people who are unaware of the subject. As long as the people of that country are not educated about Bitcoin, a good part of them will be prone to reject it.
Among the most common criticisms is the classic accusation of contamination from mining. This is one of the most out of place because Bukele offered details of the use of energy from volcanoes (geothermal) to power Bitcoin mining.
On the other hand, some financial analysts believe that establishing Bitcoin as a legal tender will bring problems. Among these problems is that regulatory laws will be hampered. The latter could bring problems to the country in the international arena due to the increased risk of money laundering and other related crimes.
But critics of El Salvador’s initiative are not only within its borders. Some international organizations such as the International Monetary Fund have criticized the measure. The same can be said of the World Bank, which refused to advise the country on the use of Bitcoin as legal tender.
Bukele defends his initiative
The fact that Salvadorans will receive a $ 30 bonus in Bitcoin indicates that the government wants to speed up onboarding. In this sense, the president assures that it is a step towards attracting international investment to the country. It also ensures that the use of Bitcoin allows reducing the costs of sending remittances from abroad.
Why have we created the law? Because Bitcoin has $ 600 million of market capitalization globally. If we do this, investors and tourists who own Bitcoin will be able to come to the country, “said Bukele.
With the Chivo e-wallet, users will be able to make payments or receive payments in Bitcoin and other currencies. At the same time, they have the option of converting their cryptocurrency amounts to dollars. In this way, the president reaffirms that the use of cryptocurrencies is totally optional and not an imposition.
In that sense, to stimulate the use of cryptocurrency, Salvadorans will receive the Bitcoin bonus. Thus, a large number of citizens of the country who are not banked, will be able to access the world of finance without the complexities required by banks.
President of El Salvador presented the Chivo wallet service. He also announced that Salvadoran citizens will receive a bonus in Bitcoin equivalent to $ 30 dollars. Source: Trustnodes
Some precedents at the country level
Although it is the first country to adopt Bitcoin as legal tender, there have been initiatives similar to the Bitcoin bonus that Salvadorans will receive. The best known case was Venezuela, where the government created a cryptocurrency called El Petro. To promote the use of it, the State handed out bonuses of 0.5 PTR to users, equivalent in theory to $ 30 dollars.
In the same way, in the South American country, the government created a storage platform with the name Petroapp. Despite this, in Venezuela no cryptocurrency has the status of legal tender.
On the contrary, despite promoting the use of its cryptocurrency, no government institution accepts it as a form of payment of taxes and other services. Passports, taxes, utility bills, etc., have the payment option blocked in PTR.
It has even been known through complaints from miners that the governing body of cryptocurrencies charges mining licenses in BTC and not in PTR. All this has had a negative impact on this digital currency that has a “stable” official value. However, in the main exchanges in the country, it is traded below its price and its use is practically nil in trade.
Data to take into consideration
In the midst of promoting the use of Bitcoin, Salvadoran citizens will receive a bonus equivalent to $ 30 dollars from the Bukele government, who will have to download a storage application created by the government and open an e-wallet user. of the user, citizens are required to present their personal data and identity documents. The President of El Salvador, Nayib Bukele, assured that the use of the pioneer cryptocurrency is optional. At the same time, he defended his initiative, ensuring that now the sending remittances will be less expensive with Bitcoin. At the same time, there will be more attraction of investors and tourists, the total amount of money disbursed for the Bitcoin bond is $ 117 million.
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