The fund intends to invest $23.3 million in Bitcoin ATMs and another $30 million in airdrops to citizens who install the “Chivo” wallet.
El Salvador’s push to adopt Bitcoin as legal tender has gained momentum after the country’s lawmakers established a $150 million fund through legislation in the National Assembly.
The bill establishing the Trust, a fund aimed at ensuring that developments aimed at the use of Bitcoin in the country are on track, was approved by 64 legislators. In addition, 14 officials voted against establishing the fund on August 31.
The initial Trust, according to Finance Minister Mara Luisa Hayém Brevé, will hold $150 million from the country’s $500 million reserve for economic development.
However, given other developments, the government may decide to increase the amount, according to a local news outlet quoting the Finance Minister.
The government intends to invest $23.3 million in the cryptocurrency ATM project, with over 200 BTC machines already installed across the country. Another $30 million is being set aside to incentivize citizens to use the “Chivo” Bitcoin wallet.
The official launch of “Chivo” is just a few days away, and the fund is expected to provide a critical foundation as users begin to convert their BTC into US dollars.
The fund will be administered by El Salvador’s state-backed development bank (BANDESAL), with various officials on hand to ensure its success.
El Salvador’s Bitcoin Law was passed on June 8, 2021, and will go into effect on September 7, 2021. However, public opposition to the adoption plans has grown, particularly in regard to issues surrounding merchant adoption.
However, government officials, including President Nayib Bukele, have moved to reassure citizens that they will not be forced to accept Bitcoin.