Bitcoin will become legal tender in El Salvador alongside the U.S. dollar in seven days. The Salvadoran government has released a video explaining what to expect when the Bitcoin Law enters into force. The video features the government’s fee-free crypto wallet, Chivo.
Government’s Video Explaining What to Expect When Bitcoin Becomes Legal Tender
The Bitcoin Law in El Salvador will come into effect on Sept. 7 when BTC will become legal tender alongside the U.S. dollar. Salvadoran President Nayib Bukele tweeted a video explaining what to expect, including the benefits of using the government’s official crypto wallet, Chivo.
According to a translation of the video content posted on Twitter, “Starting September, bitcoin will be legal tender in our country alongside the U.S. dollar,” the video begins. It further details:
Using bitcoin is not mandatory. You will have the option of paying and collecting in bitcoin or dollars. All cash transactions, prices, salaries and pensions will continue to be in dollars.
“You will have the option to use the government’s wallet for free to make transactions in bitcoin or in dollars at any time of day and without fees. You can also use any other wallet to make your transactions,” the video continues.
“With our wallet, you will receive a bitcoin bonus worth $30 USD for you to spend. You will have the option to pay in dollars or bitcoin from your mobile without the need to handle money or sign vouchers. Also, those who collect from you will not need to handle money, a card, or be charged any fees. You will have the option of sending and receiving remittances at any time of day without fees.”
The video ends with a message from the government of El Salvador stating that “Using bitcoin is easy and optional.”
On Monday, President Bukele tweeted that “There will also be 200 Chivo ATMs” where people can withdraw money without having to pay any commission. “You can buy bitcoin for your Chivo wallet or reload dollars and keep them as dollars in your electronic wallet. You can also withdraw remittances in cash without commissions.”
Many countries worldwide are watching to see what will happen when bitcoin becomes legal tender in El Salvador. Dante Mossi, executive president of the Central American Bank for Economic Integration (CABEI), said last week that “Everyone is watching if it goes well for El Salvador and if, for example, the cost of remittances drops substantially.” If so, he expects more countries to follow suit.
CABEI is helping El Salvador with the technical implementation of making bitcoin legal tender. Meanwhile, the International Monetary Fund (IMF) has warned that making bitcoin equivalent to a national currency is inadvisable.