For the implementation of the new Bitcoin Law that will be implemented on September 7, the government of El Salvador will create the wallet called Chivo
El Salvador's president, Nayib Bukele, doubled down on his bets on the country's new law that makes Bitcoin legal tender and offered $ 30 in cryptocurrency to any citizen who signs up for a digital wallet.
The government will create its own Bitcoin wallet called Chivo, which is the lingo for "cool" in El Salvador, Bukele said during a national address Thursday night. The funds will be deposited in the account of any citizen who downloads it and registers as a user with their phone number and identification number, he said. The law that makes Bitcoin legal tender will go into effect on September 7, he added.
"Why create this law? Because Bitcoin has a market capitalization of US $ 600,000 million worldwide and if we do this, investors and tourists who own Bitcoin will come to the country and benefit Salvadorans and the economy, ”noted Bukele.
Consumers can pay businesses with Bitcoins from their wallets for dollar-listed items. But if business owners want to get paid in dollars, they can press a button in the Chivo app to immediately convert Bitcoins to dollars, according to Bukele. “It will be totally optional. The dollar will continue to be legal tender, ”he said.
The Chivo wallet will be available for download in September and will be compatible with other Bitcoin wallets, Bukele said.
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