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El Salvador has been in the headlines ever since it became the first country to adopt a digital currency as a legal tender. The Bitcoin bill has caused some controversy in the country as many have reportedly opposed it.
However, the bill is set to take effect on September 7th, after which Bitcoin will officially be adopted as a legal tender in El Salvador. This initiative had its share of challenges that have been tackled one after another.
The government has now moved to the next step and has reportedly set up a Bitcoin Trust. This trust will make it easy to offer crypto-related services and build an impressive crypto infrastructure. Let’s find out more about the initiative taken by El Salvador’s Legislative Assembly.
Meanwhile, if you want to buy Bitcoin, you can do so by clicking on SwissBorg or Kraken (U.S. citizens).
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What to Know About El Salvador’s BTC Trust?
According to reports, the Legislative Assembly in the country has passed legislation to create a Bitcoin Trust of $150 million. This bill was passed on August 31st and had 64 officials in favor while 14 opposed its creation.
The purpose of creating this BTC Trust is to facilitate Bitcoin-related services in the country and develop an infrastructure that will help in the vast adoption of the digital asset.
The government has reportedly designated $23.3 million to install the crypto ATMs in El Salvador. These ATMs are backed by the government and will help people to exchange between BTC and USD.
On other hand, $30 million has been set aside to promote the use of the Chivo wallet. This crypto wallet was introduced in June and every adult citizen was stated to get $30 worth BTC if they downloaded the Chivo wallet app.
The Bitcoin Trust has also been created to enable the conversion of BTC into U.S. dollars, which is currently being used as a legal tender in El Salvador.
The operations of the BTC Trust will be overseen by the Development Bank of El Salvador.
El Salvador took a $500 million loan from the Central American Bank for Economic Integration (CABEI). This loan was taken for the economic recovery of small and medium businesses in the country. However, the $150 million set aside for the trust will now be reportedly moved from the CABEI loan.
It has also been reported today that Koibanx, an asset tokenization and financial infrastructure company has signed a deal with El Salvador. According to the deal signed, Koibanx will develop digital asset infrastructure in the country with Algorand’s open-source blockchain.
Can this Take BTC to New Heights?
Bitcoin is the most prominent cryptocurrency in the market and is within a good price range at the moment. After briefly reclaiming the $50,000 price region, it is currently trading at $47,424 (at the time of writing).
Here is a graph by CoinGecko that shows the price of BTC over the last month.
Adopting BTC as a legal tender has been seen as a bold initiative taken by El Salvador. This has also ignited the interest of other Central American countries such as Panama.
Even though some doubts are surrounding the official adoption of BTC and its effects on the economy of the country, it is likely to take the crypto asset to a new level.
The proper results of adopting Bitcoin as a legal tender will be seen in a week.
Therefore, if you are interested to purchase BTC make sure you choose some of the lowest fee Bitcoin exchanges.
On the other hand, if you are a margin trader you can opt for the Bybit exchange. ByBit allows you to leverage trade Bitcoin; by signing up with our link and making your first deposit, you can receive up to a $3,650 bonus! (Bonus may vary based on deposit amount)
