According to the national newspaper El Diario de Hoy, deputies of El Salvador’s Legislative Assembly’s Finance Commission decided Monday to establish a $150 million Bitcoin trust to trade Bitcoin and US dollars in El Salvador.
El Salvador’s $150 million Bitcoin grant
El Salvador’s Minister of Economy, Mara Luisa Hayém Brevé, allegedly said that the original $150 million grant might be increased.
The minister stated that numerous teams are stationed across the region to teach people how to use the Chivo Wallet. They have created a user-friendly program to help El Salvadorans learn how to utilize Bitcoin.
Hayém Brevé also mentioned some people’s anxiety and skepticism regarding Bitcoin, as shown by recent minor demonstrations. However, she went on to say that in the following weeks, the financial world would be watching El Salvador as it becomes the first nation to embrace decentralized digital money.
Despite some concern about the Bitcoin law’s mandatory nature, El Salvadorans will have the option of accepting and using the currency or the $30 worth of Bitcoin that would be given to them commission-free. The $150 million Bitcoin Trust will allow continuing trading in dollars for individuals skeptical of the ground-breaking financial technology.
The parliament also decided to amend the General State Budget for this year to repurpose a $500 million loan from the Central American Bank for Economic Integration. The $150 million to facilitate Bitcoin transactions will be allocated and managed by the Development Bank of El Salvador from these monies (Bandesal).
$150 Million Bitcoin Trust budget
Notably, $23.3 million of the funds will be utilized to construct Chivo ATMs and associated infrastructure throughout the nation. President Nayib Bukele is said to have pledged another $30 million to encourage people to study Chivo.
Every resident in El Salvador will have access to $30 in Bitcoin from the government via their Chivo wallet app one week from today, September 7. Citizens will legally accept Bitcoin as payment without paying extra changing costs when exchanging Bitcoin for dollars or obtaining more Bitcoin via the new ATMs or the app.