El Salvador has officially adopted Bitcoin as a legal tender, and the move would take effect in a few weeks. The government said it would release an official digital wallet for Bitcoin to make it easier for people to use the cryptocurrency.
Chivo to serve as official Bitcoin wallet in El Salvador
El Salvador entered the history books by becoming the first country in the world to adopt Bitcoin as a legal tender. After the parliament passed the bill, President Nayib Bukele announced a few hours ago that the law would take effect on September 7.
The government revealed earlier today that it would release a digital wallet for Bitcoin. The digital wallet dubbed Chivo would be the official wallet for Bitcoin users in El Salvador. The report from a local media outlet revealed that the digital wallet would form the basis for everyday use of the currency.
In an effort to boost adoption, President Nayib Bukele said the government would give $30 worth of BTC as soon as users download the digital wallet app. The wallet will be compatible with other cryptocurrency wallets on the market, making it easy for people to send and receive money to people outside the country.
Bitcoin’s adoption will boost remittance
President Nayib Bukele discussed the various benefits of using Bitcoin as a legal tender. According to the president, remittance is one of the huge advantages that Bitcoin has is that it can be made at any time of the day and disintermediation.
U.S. company Athena confirmed yesterday that it would be bringing 1,500 Bitcoin ATMs to El Salvador. Athena intends to invest up to $1 million in developing and installing the Bitcoin ATMs in El Salvador.
El Salvador is facing challenges with its implementation of Bitcoin as a legal tender. The government sought help from the World Bank regarding the technical aspect of implementing Bitcoin as a legal tender. However, the World Bank turned down the request citing economic and environmental shortcomings of the cryptocurrency. El Salvador has turned its attention to the International Monetary Fund (IMF) and is hopeful that the talks would be fruitful.