The Legislative Assembly approved the Trust in order to facilitate the conversion of Bitcoin (BTC) into USD
On the verge of Bitcoin (BTC) becoming a legal tender in El Salvador, the Legislative Assembly approved this Tuesday (31), a $150 million Trust in order to facilitate the conversion of BTC into USD.
The initiative is also to provide time so that the necessary technology and infrastructure occur in the best way possible with the goal of mass adoption of crypto assets.
The bill was approved by 64 legislative officials in favor versus 14 opposing the creation of the trust.
Bitcoin as a legal tender in El Salvador is scheduled to be official starting from September 7, namely next Tuesday.
El Salvador’s motivation
El Salvador is a country that suffers from over 70% of its population being unbanked, while remittance accounts for a $6 billion a year industry as expats send money home to their families.
The motivation behind the move to recognize Bitcoin as a legal currency is therefore much rooted in the fact that fiat currency inflation rates are out of control, especially in regards to the US dollar.
The decision, however, is facing a lot of skepticism and controversy inside the country, and only time will tell the success of BTC becoming a legal tender in its first country in history with El Salvador.
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