Bitcoin mining in El Salvador will probably continue to be a relatively new business for quite some time yet. There is just a $150 million fund being created by the country to assist in the development of the Bitcoin mining industry in El Salvador. Those funds will be generated from allowing a loan to be redirected that was intended to help rebuild the economy.
Bitcoin Mining in El Salvador: The Land of Volcanoes and Bitcoins
El Salvador is a topic that we never get tired of discussing in the Bitcoin community. Indeed, we previously discussed this little Latin American country’s ambitious aspirations to make Bitcoin its national currency. El Salvador’s legislature’s finance committee has just authorized a $150 million trust fund to assist the country’s ambition to make Bitcoin legal tender in El Salvador.
According to an article in the Salvadoran daily elsalvador.com, that sum might possibly be raised.
El Salvador makes Bitcoin a Legal Tender
In June, the Central American country became the first in the world to declare Bitcoin legal tender, adopting legislation that is set to go into force a few days later, on September 7.
El Salvador will launch a wallet named Chivo on the same day, which will enable transactions in both US dollars (the country’s official currency) and Bitcoin. This is the first time the government has revealed a genuine method of converting between the two currencies.
According to a statement made by the Salvadoran Legislative Assembly, the fund will assist roll out a $30 Bitcoin bonus to individuals who join up for Chivo, a system dedicated to converting doyenne cryptocurrency into dollars. As a result, El Salvador will distribute $117 million in Bitcoin to its residents.
El Salvador’s President Nayib Bukele stressed that residents will have the option of downloading the app or not, despite the fact that the $30 incentive will only be available in Bitcoins. Furthermore, the government is putting in 200 ATMs for Bitcoin transactions.
According to the statement, El Salvador believes that there are already 50,000 Bitcoin users in the nation, with ambitions to expand that figure to 4 million. It is unknown if this figure includes solely active Bitcoin users or everyone who installs a Chivo wallet.
Bitcoin without unanimous Support
Despite significant support from Bitcoin enthusiasts and supporters of President Buchele, the idea has prompted resistance from certain organizations denouncing the move on the streets and online, using hashtags such as #nadiequiereBitcoin (“nobody wants Bitcoin”) and #noalBitcoin (“no one wants Bitcoin”) (“no Bitcoin”).
A person placed anti-bitcoin stickers on the facade where an ATM would be built in downtown San Salvador on Sunday. A little time later, the troops began protecting the area.
Retirees, veterans, and some workers were among the protestors, who were allegedly anxious about the prospect of receiving their pensions in Bitcoin, despite the government’s clarification that US dollars will continue to be used to pay wages, pensions, and set pricing. Bitcoin volatility looks to be a major issue.
The Salvadoran Association of International Trucking Companies, for example, has spoken out against several parts of the Bitcoin proposal (ASTIC). According to the article, the organization is urging lawmakers to modify a legislation that forces businesses to accept Bitcoin as payment.
The Situation in El Salvador
All is not well in El Salvador. Although the country has managed to find support around the world, cryptocurrencies are still nowhere near as popular in its home country as they are here. Nevertheless, the launch of the Chivo wallet and this BTC ether should please some people. It remains to be seen how soon Mexico will follow El Salvador’s example.
El Salvador is in a state of confusion. Despite the fact that the country has gained international recognition, cryptocurrencies are still not as popular in its native country as they are here. Nonetheless, the Chivo wallet and this BTC ether should delight some individuals. It remains to be seen how quickly Mexico will follow in El Salvador’s footsteps.