El Salvador's authorities give out $30 to residents in honor of the launch of the Chivo wallet
As the Bitcoin law prepares to go into effect, the President of El Salvador is looking to draw more attention to the new asset class.
In honor of the launch of an official e-wallet called Chivo, President Nayib Bukele announced that local residents could receive $30 in Bitcoin after downloading the app and verifying their identity using facial recognition software, a Salvadoran DUI and a phone number.
The president explained how the identification process will take place with the help of a video presentation during the announcement. As a result, the user will receive not only a convenient wallet for their cryptocurrency savings, but also a starting balance of $30 available for withdrawal.
Using the wallet, it will be possible to buy and sell cryptocurrency, send funds using a QR code, and make various payments. According to the president, the functionality of Chivo in the future will be significantly expanded, and the application itself will be available for both Android and iOS devices.
Given that the adult population, who is offered to receive $30 each, makes up 60% of the country's total population of 6.5 million people, the authorities will have to spend 3,440 BTC per share, or about $117 million in the equivalent of the main cryptocurrency on the market.
The World Bank and IMF continue to disapprove of El Salvador's decision, but the government does not intend to deviate from the previously charted path. This also applies to the extraction of the main cryptocurrency using volcanic energy.
The enthusiasm of El Salvador and Bukele, in particular, was inspired by Athena, having announced plans to install 1,500 cryptomats in the country after the Bitcoin law enters into force on September 7, 2021. According to the director of the company, they are trying to leave the "comfort and profit zone" in the United States, spreading the device in Latin America.
Nayib Bukele is convinced that if the country makes due efforts to promote the main crypto-asset in El Salvador, in the future it will become one of the world's main hubs among Bitcoin enthusiasts, blocking all possible losses from this venture.