El Salvador has begun to install Bitcoin ATMs, allowing its residents to convert cryptocurrencies to US dollars. The ATMs will also accept cryptocurrency withdrawals in cash, as the government plans to make cryptocurrency legal tender.
El Salvador, officially known as the Republic of El Salvador, is a Central American country. It shares borders with Guatemala on the northwest, Honduras on the northeast, and the Pacific Ocean on the south. San Salvador, El Salvador’s capital, is the country’s largest city.
El Salvador’s government plans to install 200 teller machines, initially following its wallet-Chivo model. Chivo is a local slang for the word cool, as well as a type of digital wallet.
El Salvador President Nayib Bukele’s Statements
President Nayib announced on Twitter that the country will have 50 financial branches where people can deposit and withdraw money. The transactions will be commission-free, which means they will be completely free.
El Salvador’s president is Nayib Bukele. He stated that accepting Bitcoin payments will save Salvadorans $400 million in yearly remittance fees from abroad.
In addition to being a Salvadoran politician and President, Nayib Armando Bukele is a businessman. He is El Salvador’s 43rd president, having taken office on June 1st, 2019, after winning the 2019 election.
Bukele announced the country’s intention to become the first in the world to accept bitcoin as legal tender in June. He announced it in June, and the acceptance would be alongside the US dollar, drawing both criticism and praise.
Many critics of this decision, however, point to the fact that Bitcoin is extremely volatile. For example, since its all-time high of about $65,000 in April, the crypto value has almost halved.
El Salvador’s Finance Minister Reacts To The Bitcoin News
El Salvador’s Finance Minister announced that the country’s Bitcoin law would go into effect on September 7th. During a local TV interview, Alejandro Zelaya revealed this, adding that Salvadorans would download the Chivo.
This means that beginning September 7th, residents of the country will be able to download the government’s digital wallet.
Alejandro Zelaya Villalobo is a Salvadoran politician who serves in President Nayib Bukele’s cabinet as Minister of Finance. He previously served in the same cabinet as El Salvador’s Deputy Minister of Revenue.
Salvadorans would need to enter their private ID number to earn $30 in Bitcoin, according to the Finance Minister. He also announced that the government had set aside $150 million to support Bitcoin’s conversion to the US dollar.