The Salvadoran Court of Accounts will investigate the trust, the purchase of Bitcoin, and the process tenders. The public agency will audit public funds and may report irregularities to the Attorney General’s Office.
The human rights organization Cristosal, having a presence in El Salvador, Honduras, and Guatemala, requested an investigation into the Bitcoin trust (BTC). The Salvadoran Court of Accounts accepted the motion, which urges to analyze the purchase of Bitcoin ATMs and the development of the Chivo wallet.
On Twitter, Cristosal shared a statement on Twitter saying that the public agency accepted the audit request. The latter will investigate the management of government funds led by president Nayib Bukele to implement the Bitcoin Law. That regulation came into force on September 7th in the Central American country amid protests.
The objective of the audit is to evaluate the use of public funds to create the trust, develop the Chivo wallet, and install Bitcoin ATMs. Cristosal seeks to know whether it complied with the anti-money and asset laundering regulations, as well as the due public tender.
The Court of Accounts is in charge of the control of public expenditures in El Salvador. The entity responded to Cristosal’s request by explaining that the General Audit Directorate would deal with it. The Court may intercede with the Attorney General’s Office to request the initiation of criminal proceedings if it finds irregularities.
Creation of a Trust, Purchase of ATMs, and Development of Wallets in El Salvador
It was necessary to develop some tools that would facilitate the applicability of the Bitcoin Law for the Salvadoran State and its citizens. For that reason, the government decided to create a trust of USD 150 million, which the Legislative Assembly approved on August 31st.
In addition, they bought 400 bitcoins, for which they had to disburse more than USD 20 million. No one knows with certainty whether the Central Reserve Bank of El Salvador or the country’s president acquired those coins.
The fund primarily seeks to allow Chivo wallet users to exchange Bitcoin for US dollars instantly. Of course, some people will not wish to store their income or savings in the pioneering cryptocurrency. In that case, they can accept payments with Bitcoin and then convert them into US dollars, the other legal tender in the Central American country.
Similarly, the government of El Salvador invested funds to create the Chivo wallet. That free cell phone app allows Salvadoran citizens to store, send and receive Bitcoin and US dollars. In the first hours after its launch, that government tool ran into operational problems. However, President Nayib Bukele reported that the app was already working with 100% efficiency.
Finally, the Salvadoran government distributed Bitcoin ATMs throughout the country. Those machines allow citizens to exchange the pioneering cryptocurrency the American fiat currency. In recent days, some opposing the government vandalized and burned one of these devices during a protest.
By Alexander Salazar
