Ahead of the September 7 implementation date of the Bitcoin law, the President of El Salvador, Nayib Bukele, unveiled a new government crypto app. The government issued app known as Chivo is used to distribute the bitcoins to the citizens.
According to reports, any citizen who downloads the app and signs up for it is automatically eligible for the $ 30 bitcoin airdrop. The president said the move is designed to encourage Bitcoin adoption across the country.
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El Salvador was the first country to adopt Bitcoin as legal tender when it announced in June. The announcement came at the Bitcoin conference held in Miami earlier this year. In addition, the president stated that he would grant citizenship to individuals who invest 3 bitcoins in the country’s economy.
The plan was made public in a public address by the President yesterday evening.
Why a government issued wallet?
A simple answer to this question is logistics. Bitcoin’s anonymity makes it possible for people to create multiple wallets from other wallet providers. This would be a nightmare for the government to find out who was real or not and who had already received their airdrops and reapplied. The government issued wallet would ensure that the government can confirm that the users are real citizens. And it will help mitigate the likely problem of people trying to get more than one airdrop.
It would also mean the introduction of a government crypto wallet. This could serve as a central database for people using the coins.
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Just because it’s issued by the government doesn’t mean people have to leave their coins in their wallets. Once you’ve received your $ 30, you can simply transfer it to any wallet of your choice. But there will at least be a record that they have already received their airdrop.
The drop is estimated at around $ 117 million. This takes into account the population of the country and then the population for the age in question for the dropping.
El Salvador has 6.5 million inhabitants. It is estimated that around 60% of this number is over 14 years old. This means that around 3.9 million people are eligible for the airdrop. This brings the monetary estimate to $ 117 million. This corresponds to around 3,440 bitcoins.
Adoption in El Salvador
President Bukele took the time to explain why they were doing this. He stated that they wanted to encourage citizens to use Bitcoin. And what better way to do that than give people some free bitcoin to spend?
“What we are doing is promoting Bitcoin and using the system,” said the President. What the multiplication of money will do in the economy. ”
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The argument for the president’s introduction of Bitcoin has always been to protect non-banks. About 70% of El Salvador’s citizens reportedly do not have a bank account. This means that over half of the population does not have access to a proper bank account.
In response to the growing rumors that wages and pensions are being paid in Bitcoin, President Bukele assured the nation that such a thing would not happen. Wages and pensions will continue to be paid in US dollars.
During the address, President Bukele also previewed the Chivo app. He showed the graphics and how easy they will be to use.
The Chivo app has not yet been released for use. But it will be available for Android and iOS devices. And it will be compatible with other cryptocurrency wallets.
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