How El Salvador is preparing to give bitcoin legal tender

200 ATMs installed where citizens can convert dollars into virtual currency. The law wanted by President Bukele comes into force on September 7

The "Chivo" ATMs in El Salvador to change bitcoin into dollars (photo Twitter Bukele) El Salvador's plan to make bitcoin legal tender continues: the government is deploying 200 ATMs across the country to convert dollars into cryptocurrency and vice versa. The law proposed by President Nayib Bukele, after being approved in June by parliament, will come into force on 7 September, therefore the small Central American nation is equipping itself with useful infrastructures to accompany citizens' access to the Chivo digital wallet service, which in local slang it means "ganzo". 20% of the national gross domestic product rests on emigrant remittances and, according to the executive, the Bitcoin law will allow citizens to save $ 400 million a year in money transfer fees.

The government created a $ 150 million fund to support the project. By downloading the digital wallet, developed together with Strike and entering their identification number, citizens will find themselves as an incentive 30 dollars already credited in bitcoin (at the moment the figure would be equal to 6 thousandths of bitcoin), according to what the Minister of Finance explained Alejandro Zelaya. There will also be 50 financial branches where you can withdraw or deposit money in the country, which has 6.4 million inhabitants and is just under the size of Emilia Romagna.

También habrán #CajerosChivo en todas partes y podrán retirar en EFECTIVO, las 24 horas del día y SIN COMISIONES, por más que la oposición dam the opposite.

The problem para ellos es que podrán convencer a algunas personas de que sí habrán comisiones, but only hasta el 7 😘 pic .twitter.com / H8gkYTEucc

- Nayib Bukele 🇸🇻 (@nayibbukele) August 23, 2021

The recovery

Meanwhile, the The world's largest cryptocurrency reached a $ 50,000 valuation on Sunday, returning to levels not seen in three months. Bitcoin (+ 7.57%) and other digital currencies have regained vigor in the last week, according to data from Coinmarketcap: Ethereum + 4.54%, Cardano + 39.76% and Binance Coin + 17.42%. A momentum gained in the wake of several announcements.

Coinbase, the largest American exchange platform, said the other day that it wants to budget the purchase of 500 million dollars in cryptocurrencies and invest the 10 % of quarterly revenues in a portfolio of crypto assets. The company, according to the plans of CEO Brian Armstrong and CFO Alesia Haas, plans to invest in Ethereum, decentralized finance tokens and proof of stake assets.

On the other side of the Atlantic , PayPal allows customers in the UK to buy, sell and store cryptocurrencies from as little as £ 1 this week. It will be the first international expansion of the service outside the United States. PayPal expects a spread of digital tokens in ecommerce transactions and aims to represent a level of entry into the world of crypto, even for non-specialized users. For the moment it will not be possible to move digital tokens to apps of other virtual wallets.

Finally, in the world of non-fungible tokens (nft), Visa makes its debut, which has just bought a CryptoPunk for 150 thousand dollars. Why the leading company in the world of credit cards was interested in the bizarre unique characters developed in 10 thousand copies in 2017 by Larva Labs, drawn in pixelart, largely distributed for free and then become a sort of relic for fans, he explains. Cuy Sheffield, director of Visa's cryptocurrency unit: “We believe NFTs will play an important role in the future of retail, social media, leisure and commerce. To help our customers and partners participate, we need to develop a first-hand understanding of the infrastructure requirements required of a global brand to purchase, hold and leverage an NFT. ”


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Topics

Bitcoin Cryptocurrencies Finance Fintech globalData.fldTopic = "Bitcoin, Cryptocurrencies, Finance, Fintech "

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