El Salvador president said , the free bitcoin is for spending and not to be converted to USD

[Lens1000]

El Salvador has made a smart move in the cryptocurrency space. The president said that the free bitcoin that the country is about giving out to her citizens comes in the planned airdrop is for spending and not to be converted to fiat currency via the cryptocurrency ATMs

Bukele have been criticised that the creation of the bitcoin in the country goes against the established order. The critics question the president on how he intends to get the money to finance the bitcoin project

He answered the critics by citing examples on how the amount the government spent to mint the fiat currency and be said , the government intends to do the same for bitcoin and that it's more cheaper

The free $30 worth of bitcoin will be given to Salvadorians who download the country based crypto wallet called Chivo. He planned to distribute the free bitcoin to a minimum of 2.1 million Salvadorians

He claimed that the wallet would be “totally” compatible with other wallet providers and would be “completely free,” allowing “commission-free remittances,” and cost-free “USD-BTC and BTC-USD conversion.”

On a last note , president Bukele is keen to adopting the bitcoin. Do you think his move will have a negative impact on the economy of the El Salvador?

 

[Alexandoy]

If you received that $30 worth of Bitcoin as aid for spending my question is how would you spend it in El Salvador (assuming that you are a citizen and resident of that country). Is Bitcoin accepted by all shops and business establishments in El Salvador? Or do you have to convert the Bitcoin into El Salvador money?

 

[Josemendez]

To an extent , I think this will have effect on the country. The international monetary fund is already against this plan by El Salvador to make bitcoin a legal tender. Some regulators in the country are not in agreement with it as well.

The issue is that bitcoin didn't have the features that makes it worthy of being used as a legal tender. Citizens will still have to result to stable coins for their BTC not to depreciate.

 

[sincerem]

That will surely have a positive impact in the country's economy in the future. The government especially the president Bukele have weighed its significant improvement around BTC, saw the need adopting it and believed that adopting it Intl and for local transactions will make sense. With the wallet they've created, they'll be using it to receive payments from other countries they bargained business with cos that's the primary target of the country adopting BTC, in order to be their preferred payment option for international transactions. More benefits unfold is coming for the El-salvadorans in the future.