Nayib Bukele, the man who took the internet by storm is the president of El Salvador, a country in Central America. The man shook the crypto community when he announced the adoption of Bitcoin in the country. This news was greatly celebrated by the enthusiasts. At that point, BTC was struggling and was bearish but this news at that point was a ray of hope and helped BTC to stabilize itself. Under the law the businesses would accept bitcoin along with US Dollar (the country’s other official currency). Salaries would still be paid in US Dollars.
Mining Rig and Wallet
As part of the plans for the adoption of Bitcoin, the president of El Salvador had announced a development of a mining rig that would use geo thermal energy from the volcanoes to power itself. Where China was going for a crack down on Mining, El Salvador made its move.
Now the president has plans to launch their first Bitcoin wallet known as Chivo. The wallet would be launched on 7th September, 2021. The same day when the country would officially become the first one to adopt bitcoin as their currency.
Incentive for its Residents
The government is on its way to airdrop $30 worth of bitcoin to its residents to their Chivo wallets for almost 2.5M users in a country of 6.5M. This means that almost $75M USD are being spend by the government for this.
Bukele and his supporters believe that BTC adoption would help the country flourish. According to th president, bitcoin is going to help send money across border which will reduce fee.
Bank of America has suggested that this bold move is going to help the country move forward and would help people access digital payment in a country where almost 70% people don’t have access to bank accounts.
Not Everyone agrees with Bukele’s view
Where a lot of people have come forward with praises for the president and the country itself, but not everyone s agreeing with the president on this. Protests have broken in the country amidst the adoption of Bitcoin who think that adoption of bitcoin isn’t a good thing and that it will probably put the country in a financial risk. Economist fear that the president is moving too fast without taking major studies underway.
IMF has also warned about the adoption as it can pose serious financial threats and damage to stability and result in crisis.
