The fund seeks to invest $ 23.3 million in bitcoin ATMs and another $ 30 million is earmarked for airdropping to citizens installing the “Chivo” wallet
El Salvador’s move to adopt Bitcoin as legal tender took off after the country’s lawmakers passed legislation in the National Assembly to create a $ 150 million fund.
The bill that created the Trust, a fund designed to ensure that developments around the use of Bitcoin in the country are on track, was passed by 64 lawmakers. In the August 31 vote, 14 officials also rejected the creation of the fund.
Treasury Secretary María Luisa Hayém Brevé said the original trust will hold $ 150 million out of the country’s $ 500 million reserve earmarked for economic development.
However, given other developments, the government could increase the amount, a local news agency said, citing the finance minister.
The government plans to allocate $ 23.3 million to the crypto ATM project, with over 200 BTC machines already installed across the country. Another $ 30 million will be set aside to motivate citizens to buy the Bitcoin wallet named “Chivo“.
The official start of “Chivo” is only days away in the expectation that the fund will provide a crucial foundation when users start converting their BTC into US dollars.
The government-backed El Salvador Development Bank (BANDESAL) will manage the fund, with various officials responsible for ensuring the success of the launch.
El Salvador’s Bitcoin Law was passed on June 8th, 2021 and will come into effect on September 7th. However, the introduction of the adoption plans has seen increasing resistance from the population, particularly with regard to issues of merchant adoption.
But government officials, including President Nayib Bukele, have made efforts to reassure citizens that individuals and businesses will not be forced to accept bitcoin.