El Salvador has bought $135 million worth of bitcoin (BTC) to distribute among the residents of the country.
Before the weekend, it was announced via Forbes that every adult citizen would receive free BTC worth $30 if they set up an account on the government’s cryptocurrency app. President Nayib Bukele reported this. About 1,500 bitcoin ATMs will also be installed. This indicates that bitcoin adoption in El Salvador is in full swing.
Another proof of this is the fact that Bukele has come up with a plan to mine bitcoin using volcanoes. El Salvador has a lot of volcanic activity, which releases a lot of heat, which is then converted into energy. Energy that is 100% clean and can therefore be used for mining.
El Salvador has about 4.5 million adult inhabitants. If they all accept the government’s offer to receive free bitcoin, the number of bitcoin users would immediately increase by 2.5%, according to Willy Woo.
Bitcoin as a means of payment
The transition to bitcoin as a means of payment is therefore gaining momentum, but President Bukele has emphasized that the use of BTC is not mandatory. The US dollar also remains an official currency of the country.
“Using Bitcoin will be optional, no one will receive Bitcoin if they don’t want to. When someone receives a payment in Bitcoin, they can choose to receive it automatically in dollars.”
Bukele emphasizes that the adoption of bitcoin as legal tender will not be comparable to the process that took place when the country adopted the dollar. The population’s bank accounts were then converted from the then currency, colón, to the dollar. That is not the case now.
One of the main reasons for the government to make BTC legal tender is to simplify the process of transferring money to residents.
From September 7, bitcoin will officially be legal tender in El Salvador. From then on, citizens will have the opportunity to pay with both BTC and US dollars wherever they are.