File Photo: The representation of the cryptocurrency Bitcoin can be seen in this figure taken on August 6, 2021. REUTERS / Dado Ruvic / Illustration / File Photo / File Photo
August 31, 2021
San Salvador (Reuters) – Tuesday’s El Salvador parliament will launch a $ 150 million fund to facilitate the conversion of Bitcoin to the US dollar ahead of plans for Central American countries to adopt cryptocurrency as fiat currency next week. Approved the law to create.
Parliament approved the fund with 64 votes in favor and 14 votes against. El Salvador is already using US dollars and is preparing to officially adopt Bitcoin on September 7.
Central American countries will be the first in the world to use cryptocurrencies as legal tender.
Money for the new fund will be redirected from the Treasury’s current budget and managed by the El Salvador State Development Bank (BANDESAL), lawmakers said.
“The purpose of this law is to financially support state-provided alternatives without compromising private initiatives that enable users to perform automatic and instant conversions from Bitcoin to US dollars.” Said a parliamentary document.
According to President Nayib Bukele, who announced the initiative in June, at least 200 ATMs and 50 consulting centers for the government’s digital wallet app “Chivo” are set up all over the country, and users can pay without paying fees. You can deposit and withdraw.
(Report by Nelson Renteria, Written by Cassandra Garrison, Edited by Steve Orlovsky)