They will donate bitcoins to boost their adoption: the unusual strategy announced by the President of El Salvador

The government of El Salvador is convinced that adopting the controversial Bitcoin as legal tender can have a positive impact on its country’s economy and is willing to spend to boost it. President Here to watch He said on a nationwide channel that he would deposit the equivalent of $ 30 in bitcoin to citizens who install the digital wallet the country will adopt to support cryptocurrency transactions.

In a speech, the president said that the use of Bitcoin will not be mandatory but will be promoted by the government. As of September 7, Bukele estimated that a virtual wallet or state “wallet” called “Chivo” will start working, and once downloaded, it will immediately have a balance of $ 30 in bitcoin.

“Just by lowering it, you will receive the equivalent of $ 30 in bitcoins that will be donated,” he said while acknowledging the difficulties this promise involves, given the token’s enormous volatility.

“That $ 30 can go up, it can go down, but let’s remember that that $ 30 is free. No one has put in $ 30 of their money, but the government is putting it in, ”he insisted.

However, Bukele did not specify what the total cost to the state of these donations would be, nor did he give much more details on how the initiative will be carried out.

As reported by the Salvadoran local press, the crypto wallet “Chivo-wallet” will use the personal data of users since it will not only have to scan the Single Identity Document to use the application, but it will also have to make a facial recognition of the user. the person.

“The more wallets there are in the country, the more money will grow,” Bukele said.

In the cryptocurrency world, the strategy of loading the balance into wallets is known as an airdrop – an “air delivery” or “air landing” – which is used to improve knowledge of a new currency. In this case, the movement will be with the most well-known cryptocurrency with the highest market capitalization, which will have a cost that is no less.

In his statement, he also highlighted the benefits of using Bitcoin, such as remittances that can be done at any time of the day and disintermediation.

On June 9, the law making Bitcoin legal tender was approved by an absolute majority by the Salvadoran legislature, with 62 members voting in favor of the project, while 19 opposed it and three abstained.

The Bitcoin law states that traders must accept cryptocurrency as a method of payment, as well as the US dollar. Opposition to the country’s new law has grown, with some claiming it violates the country’s constitution.

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