đžđ» El Salvador: How Unconventional Economic Decisions Lead to Surprising Outcomes
đȘ In June 2021, the President of
#ElSalvador , Nayib Bukele, introduced a bill that was enacted in September of the same year. This legislation mandates the use of
#Bitcoinâ for the payment of goods and services by businesses and organizations in El Salvador.
đ° Currently, El Salvador holds cryptocurrency
#assets amounting to over 5,700
$BTC , valued at approximately $312 million USD, placing it fifth among countries that have officially disclosed their cryptocurrency holdings.
âïž To promote the use of Bitcoin, the Government of El Salvador is conducting an active campaign for its widespread adoption:
1ïžâŁ Launch of a National Crypto Wallet: To encourage citizens to use Bitcoin, the government launched the national crypto wallet "Chivo." Salvadorans received cryptocurrency equivalent to $30 USD upon registration. Additionally, many institutions have installed ATMs that
#exchange cryptocurrency for cash. These actions draw attention and facilitate the spread of cryptocurrency among the population.
2ïžâŁ Crypto Licensing: The country has introduced a system of crypto licenses that simplifies the registration and regulation of cryptocurrency operations. These requirements include company registration in El Salvador, compliance with anti-money laundering (AML) and know your customer (KYC) regulations, and ensuring the security of client data.
3ïžâŁ Technical Infrastructure: The government is actively developing infrastructure to support the use of Bitcoin in the country.
International Initiatives: El Salvador is actively promoting the use of cryptocurrencies for international transactions as part of its foreign trade activities.
đ This underscores both the innovative strides El Salvador is making in the realm of cryptocurrency and the considerable challenges and risks that accompany such a bold economic experiment.
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