The President of El Salvador, Najib Bukele, announced that the status of the Bitcoin legal tender will begin on September 7, 2021.
On this occasion, the government will give Salvadoran citizens $30 worth of bitcoin.
Bukele made this statement during a national speech on Friday (25 June 2021).
The announcement by El Salvador’s head of state comes after the country’s vast majority voted in favor of his Bitcoin plan to make the largest cryptocurrency the country’s second legal tender earlier in June.
Regardless of the news of the entry into force of the Bitcoin law, the Salvadoran president also revealed the creation of a new Bitcoin wallet called “Chivo.”
According to the president, every adult who signs up for the wallet will receive a bitcoin worth $30.
This could encourage increased adoption of cryptocurrency.
Although the World Bank and the International Monetary Fund (IMF) do not support bitcoin adoption in Central America, recent developments indicate that El Salvador will not abandon its plans toward bitcoin adoption.
President Bukele’s plan has also faced opposition within the country.
Some members of the Farabundo Marti National Liberation Front (FMLN), one of El Salvador’s main political parties, have described the Bitcoin law as illegal, adding that it is harmful and also designed to pillage people’s pockets.
The president, in his recent speech, refuted the allegations, stating that Bitcoin would instead benefit the people and move the country forward.