TL;DR Breakdown
- El Salvador legislature approve $150m Bitcoin trust to enhance conversion of crypto to USD.
- Government creates crypto framework for easy Bitcoin adoption.
- Gomez speaks on why Bitcoin law is good for Salvadorians.
The legislative arm of the El Salvador government has voted for the creation of a $150 million Bitcoin Trust to facilitate easy conversion from BTC to USD and enable locals to balance their cryptocurrency exposure.
This is as the country is set to adopt the foremost digital asset as it currency on Tuesday, September 7.
Crypto infrastructure framework for Salvadorians
Ahead of Bitcoin adoption as its legal currency, El Salvador legislative assembly has developed its crypto infrastructure with the $150 million Bitcoin Trust, $23.3 million toward rolling out crypto ATMs, and $30 million to incentivize the use of the state-backed “Chivo” wallet.
These funds are to be drawn from the $500 million loan previously granted to the country for economic recovery from the Central American Bank for Economic Integration (CABEI). The funds initially are for the recovery of small and medium-sized businesses.
An overwhelming majority approved the new bill, with 64 legislators voting in favor while 14 went against it. The Development Bank of El Salvador (Bandesal) will oversee the $150 million Trust.
Outside the move by legislators, asset tokenization and financial infrastructure company Koibanx said on Wednesday that it signed a deal with the government of El Salvador to develop the country’s digital currency infrastructure with Algorand’s open-source blockchain at the core.
Why Bitcoin law is a good move for El Salvador
Mario Gomez Lozada, CEO of Powerade, an El Salvadoran citizen, and founder of Liquid.com, in a mail to Cryptopolitan, spoke on why the Bitcoin law is a good move for the country.
Stating why Salvadorians should be cheerful for the Bitcoin law, Mario said, “El Salvador is going to be the benchmark for the global adoption of Bitcoin. People and leaders of countries will be keeping an eye on how everything goes.”
Speaking further, he said that the law doesn’t just mean hope for El Salvador. It means hope for the entire region and world.
Concluding, Mario said, “Bitcoin means freedom. There are so many people getting eaten alive by remittance fees. Bitcoin provides a fee-free path to send money home.
“It also could potentially create a path for those working abroad to support their families to come back home and find work.
“Also, when you look at the percentage of unbanked in El Salvador at 70%- it becomes clear that Bitcoin opens doors to opportunities that otherwise weren’t previously available.
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