Members of the Finance Commission of the El Salvador Legislative Assembly agreed on Monday to create a $ 150 million bitcoin trust to facilitate exchanges between Bitcoin and US dollars in El Salvador, according to national newspaper El Diario de Hoy.
El Salvador’s Economy Minister María Luisa Hayém Brevé reportedly said there was a way to increase the initial allocation of $ 150 million.
“We have several teams on site to show the population how to use the Chivo Wallet. We have developed a friendly application “so that El Salvadorans can learn how to use Bitcoin, the minister said.
Hayém Brevé also mentioned the fear and doubts of part of the population about Bitcoin, as the recent small protests showed. However, she went on to say that the financial community will be watching El Salvador in the coming weeks as it becomes the first country to adopt a decentralized digital currency.
Despite some skepticism about the mandatory nature of the Bitcoin law, El Salvadorans will have the choice of accepting and using the currency or the USD 30 worth of Bitcoin, which will be given to them free of commission. The $ 150 million Bitcoin Trust will help facilitate continued dollar trading for those suspicious of breakthrough financial technology.
Parliament also voted to amend this year’s general state budget to reuse a $ 500 million loan from the Central American Bank for Economic Integration. From these funds, the US $ 150 million to support Bitcoin transactions will be allocated to and administered by the El Salvador Development Bank (Bandesal).
Notably, $ 23.3 million of these funds will be used to build the Chivo ATMs and their supporting structures across the country. Another $ 30 million was reportedly pledged by President Nayib Bukele to encourage citizens to learn how to use chivo.
In a week from today, September 7th, every citizen in El Salvador will have access to $ 30 in Bitcoin from the government through their Chivo wallet app. Exchanging bitcoin for dollars or purchasing more bitcoin through the new ATMs or the app is commission-free, and citizens can legally receive bitcoin as payments without having to pay additional exchange fees.