The President of El Salvador, Naguib Bakila, revealed that he will offer $30 worth of cryptocurrency Bitcoin to any citizen who subscribes to a digital wallet.
In a national speech, Bakila said the government would create its own bitcoin wallet called “chivo,” a slang word for “awesome” in El Salvador.
He added that the money will be deposited in the account of any citizen who downloads it and registers as a user with his phone number and identification number, noting that the law that makes bitcoin legal currency will enter into force on September 7.
The 39-year-old president emphasized his arguments that using cryptocurrency would help attract investment, increase consumption, and reduce the cost of sending remittances to the millions of Salvadorans working abroad.
But he said bank accounts in dollars would remain in dollars, and salaries and pensions would continue to be paid in dollars.
Consumers can pay businesses with cryptocurrency from their wallets for dollar-listed items, but if business owners want to get paid in dollars, they can press a button in the Shifu app to instantly convert bitcoins into dollars.
The president said the government will provide training to companies on bitcoin transactions and will seek to improve the use of the internet and mobile phone to encourage the use of the cryptocurrency.