The fund is $ 150 million whose amount could increase, said the Minister of Economy. The money will come from the redirection of a loan that was for economic recovery.
The Trust that will serve for the convertibility of Bitcoin to dollars was agreed on Monday by the deputies of the Finance Commission of the Legislative Assembly. Initially, the fund will be $ 150 million with the possibility of increasing it, said the Minister of Economy, María Luisa Hayém Brevé.
“We have several teams in the territory to show the population how to use the Chivo Wallet. We have developed a friendly application so that all Salvadorans can learn to use this cryptocurrency ”, explained the official.
Hayém Brevé mentioned that Salvadorans are waiting and that it is normal that there are doubts and fear around the use of the new currency, but that the world is seeing El Salvador as at the forefront of financial technology.
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The uncertainty of the population is based on the mandatory use of cryptocurrency, this despite the fact that the political opposition presented several initiatives in the sense of removing the mandatory nature of the law. Other sectors called for the repeal of the law, but the Assembly and the government have not backed down.
The Development Bank of El Salvador (Bandesal) will manage the $ 150 million to support the transactions.
For this purpose, the parliamentarians also agreed to reform the General State Budget of 2021 to endorse the request of the Minister of Finance, Alejandro Zelaya, to redirect $ 500 million from a loan with the Central American Bank for Economic Integration (CABEI), intended originally for the economic recovery of small and medium-sized companies.
Of those funds, $ 150 million will go to Bandesal for the Bitcoin Trust. Another $ 53.3 million for the execution of the plan, of which $ 23.3 million are for the “Cryptofriendly”, which are the places where the cryptocurrency ATMs that are being installed by the government will work.
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Another $ 30 million is for the digital wallet promised by President Nayib Bukele as an incentive for Salvadorans to use Bitcoin for their commercial transactions through the state’s digital platform called “Chivo”.
The rest of the funds are for different State institutions, including $ 20 million for Bandesal to pay the temporary subsidy for the increase in the minimum wage to Micro, Small and Medium Enterprises.