According to a Twitter thread on August 23, 2021, El Salvador’s President Nayib Bukele reassured citizens that the implementation of the Bitcoin Law on September 7 will have beneficial life-changing consequences on the public, despite “lies” produced by members of the opposing party.
El Salvador’s push for Bitcoin adoption continues.
At a time when a slew of central banks around the world are focusing their attention on central bank digital currencies (CBDCs), El Salvador, a small Central American country whose dwindling economy has been overly reliant on the US dollar, has taken a different path, believing that bitcoin will significantly alleviate its economic woes.
President Nayib Bukele allayed Salvadorans’ anxieties about the anticipated integration of bitcoin into the nation’s economy as legal cash in a Twitter thread made on August 23, stating that the digital currency will make life easier for the masses.
“The unpleasant opposition is always playing one-step chess,” says the narrator. They’ve put everything on the line to scare the public about the #LeyBitcoin, and they could succeed, but only until September 7. People will recognize the benefits [of bitcoin] once it is in place, [critics] will be exposed as liars, and they will lose twice as much,” a rough translation of Bukele’s tweet said.
Use of the Chivo Bitcoin Wallet is not required.
Unlike President Nicolas Maduro, who made the usage of Venezuela’s petro (PTR) cryptocurrency mandatory in the country, Bukele has made it plain that Salvadorans are under no need to download or use the Chivo bitcoin wallet.
Those that choose Chivo, on the other hand, will be able to take payments in both bitcoin (BTC) and US dollars, make and receive remittance payments, and more, all without paying a commission.
“With this software, you may accept payments in #bitcoin or dollars, start a small business and run it from there, receive money from relatives and friends, and send and receive remittances without paying a single penny in commission. If they don’t want to download anything, that’s fine,” Bukele declared.
The president also stated that integrating bitcoin will save the general public $400 million in remittance fees each year.
“Our city pays $400 million in remittance commissions every year. Only that saving will be extremely advantageous to our people (or at least for whoever wants it).There’s also the benefit of not needing to carry cash with you. He went on to say that it was “safer and more realistic.”
Bukele said there would be 200 ATM machines and 50 locations across the country where individuals can learn how to use bitcoin ATMs, make deposits, and withdraw monies to provide a smooth and frictionless learning experience for anyone interested in utilizing bitcoin.
While Bukele’s bitcoin drive appears to be a forward-thinking initiative, Fitch Ratings believes it will have a detrimental impact on the region’s insurance businesses. It’s still unclear how the situation will play out in the long run.