Nayib Bukele highlighted that receiving payments in BTC in El Salvador will be optional for citizens. Salvadoran citizens will receive a bonus of USD 30 from the Government for registering on the official platform.
The President of El Salvador, Nayib Bukele, recently announced that the Government’s Bitcoin (BTC) wallet will be available in September. This mobile application will allow citizens to send Bitcoin from one address to another with optional immediate convertibility to US dollars.
When registering on the wallet, each citizen will receive a bonus of USD 30 in BTC. Bukele said that this would be the only balance in US dollars that those not wanting their funds in Bitcoin will have.
The Government decided to call the application “Chivo” (great or well done in Salvadoran Spanish), which will work with an Internet connection from a mobile device. Citizens can make transactions, pay, and receive money and remittances without requiring a balance but local Internet signal.
Bukele explained that the Government’s Bitcoin wallet has two linked accounts: one in Bitcoin and one in US dollars. Salvadorans will be able to accept payments in both BTC and dollars, thanks to immediate convertibility, according to Bukele.
Salvadoran citizens must register on the Government platform by entering their identification number and their telephone number. They will then have to undergo a facial recognition and verification process through a call center.
Article 7 of the Bitcoin Law Needs Articles 8 or 12, According to Bukele
Nayib Bukele gave details about the Bitcoin Law as he considers it necessary to face the “dirty campaign” against the measure. The head of State added that the regulations will take effect on September 7th. Besides, he said that he aims to connect El Salvador with the rest of the world, attract foreign exchange and investment, and promote tourism.
He highlighted that Salvadorans will not need to receive Bitcoin or convert their US dollar bank accounts to BTC. Therefore, citizens will continue to receive their wages and pensions in US dollars.
The president also clarified doubts about Article 3, which states that prices may be expressed in Bitcoin. In this regard, he said that this would not be mandatory unless traders prefer it that way. Similarly, citizens will be able to pay with BTC or US dollars, depending on their preference.
Regarding Article 6, he said that banks will use the US dollar as the reference currency for accounting purposes. Given that this issue has worried banks and some companies, no one will use Bitcoin for accounting purposes.
According to the president, his opponents have used Article 7 to confuse people. That indicates that every economic agent must accept Bitcoin as payment when whoever acquires a good or service offers it.
“Article 7 cannot be decontextualized from articles 8 and 12, as Article 8 says that the State will provide alternatives to users. In this way, they will be able to make transactions in BTC and have automatic convertibility of Bitcoin to US dollars,” according to Bukele.
Additionally, he explained that Article 12 excludes from Article 7 those who do not have technological tools to conduct transactions with Bitcoin.
By Alexander Salazar
