Every Adult Citizen of El Salvador Will Receive $30 in Bitcoin For Free
El Salvador’s President Nayib Bukele announced that the government will give away $30 in Bitcoins for free to every adult citizen of El Salvador who downloads a BTC wallet app.
The miners welcomed this decision by the government of El Salvador. But the influential figures suggested that the government of El Salvador should buy the required amount of Bitcoins, which it intends to distribute to the residents of the country.
Analyst Willie Wu tweeted that Bitcoin’s global user base will grow 2.5% thanks to an influx of 4.5 million El Salvador citizens.
Yahoo Finance presenter Zach Guzman used the total population of El Salvador – 6.5 million people for his calculations. He stated that $195 million worth of Bitcoins would be dumped across the country.
Well, the Statista information portal reports that in 2019 the population aged 15 and over was 4.72 million.
However, as noted by Prensa Latina, citizens of El Salvador will receive free Bitcoin only after downloading a government-issued cryptocurrency wallet app.
During a press conference on June 25, President Nayib Bukele said the government’s wallet app will work wherever there is a cellular connection. And the availability of a tariff plan is not important for the application to work.
Also, the President of El Salvador announced that the law on the recognition of Bitcoin as an official currency will come into force on September 7.
El Salvador turned to the World Bank for help in the implementation and regulation of Bitcoin as legal tender. But the organization said they could not support such a request due to the environmental shortcomings of Bitcoin mining and the lack of transparency in the industry.
JPMorgan’s analysts believe that legalizing Bitcoin as a legal tender in El Salvador could lead to problems with the IMF. In their opinion, such a solution is oriented on the future growth but won’t help to solve the problems that already exist.