El Salvador’s Congress approves a $150 million fund for Bitcoin ahead of its legalisation as a form of payment.
To ease the conversion of Bitcoin into US dollars, El Salvador’s Congress enacted a measure on Tuesday that would create a $150 million (€127 million) trust fund to facilitate the conversion of Bitcoin into US dollars ahead of the country’s scheduled legal tender adoption of Bitcoin next week.
Here’s a tweet with a short video clip after the democratic assembly accepts and approved the fund raise campaign.
Congress authorised the fund with 64 votes in favour and 14 votes against as El Salvador, which currently utilises the US currency, prepares to officially adopt Bitcoin on September 7.
The Central American country will be the first to adopt cryptocurrencies as legal cash anywhere in the globe.
According to lawmakers, money for the new fund will be moved from the finance ministry’s current budget and controlled by the El Salvador State Development Bank (BANDESAL).
“The purpose of this law is to financially support the alternatives that the state provides, without prejudice to private initiatives, that allow the user to carry out the automatic and instantaneous convertibility of bitcoin to the United States dollar,” a document says.
At least 200 cash machines and 50 consulting centres linked to the government’s digital wallet software “Chivo” are being placed in various sections of El Salvador as part of the country’s preparations for Bitcoin adoption.
According to President Nayib Bukele, who introduced the project in June, users would be able to deposit and withdraw money without paying a commission.
The Bitcoin’s journey within the nation is still far ahead but El Salvador started it earlier than any country which made the country more digitally stable.
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