The Congress of El Salvador approved on Tuesday the creation of a trust with an initial amount of 150 million dollars to guarantee the realization of transfers between the bitcoin and the US currency by launching a convertibility box for the Government’s digital wallet.
The Savior in June became the first country in the world to give legal tender to the cryptocurrency, along with the US dollar, amid doubts from international financial organizations and markets. The measure will take effect on September 7.
The trust law, approved with 64 votes in favor to 14 against, provides “to financially support the alternatives that the State provides, without prejudice to private initiatives, that allow the user to carry out the automatic and instantaneous convertibility of bitcoin to dollar” , according to the text.
The funds will be taken by the Ministry of Finance from the current budget and administered by the state Development Bank of El Salvadorsaid the deputies. The regulations will enter into force eight days after their publication in the official gazette.
The trust will also be “empowered to carry out fund-raising operations, as well as the issuance and placement of credit securities in national and international markets.”
The adoption of bitcoin as legal tender, an initiative personally promoted by the president Nayib bukele, has aroused the suspicion of the International Monetary Fund (IMF), with which the Government negotiates a program of almost 1,000 million dollars.
A poll released in July revealed that more than 75% of Salvadorans consider Bukele’s plan little or not at all successful.
Recently, the president announced the installation of at least 200 ATMs and 50 advisory centers of the government digital wallet project “Chivo”, a local word for something “good” or “nice”, in which users can deposit and withdraw the bitcoins you have obtained in dollars, without charging commissions.