Bukele says it is “cheaper” to operate with bitcoin than with dollars in El Salvador

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The president of El Salvador, Nayib Bukele, assured this Monday that it will be cheaper for the government to absorb the costs of operating with bitcoin from September, than to print dollars and bring them into the country from the United States.

In its economy, dollarized 20 years ago, to bring the ticket from the United States, the government pays “100% of its printed value, plus air transport, insurance, custody, transport and ground security to the vaults, security and administration of the vaults, distribution of that money to the banks, “the president said on Twitter.

“The same will be done with bitcoin,” where the cost of operating the cryptoactive in the country “is absorbed by the government,” said the president, but “only much cheaper.” Although he did not specify amounts.

Last week, in an interview with the podcast “What Bitcoin did”, Bukele revealed that the developers of Strike Wallet are the same ones who will be in charge of the design of the electronic wallet “Chivo” created by the government. The user will be linked to the Salvadoran identity document.

Citizens who download “Chivo” will receive the equivalent of $ 30 in bitóin for free to start operating, as a way to promote its use.

“There will be more than 200 Chivo points (between ATMs and branches) in historical centers (of cities) and shopping centers, where (people) will be able to withdraw dollars in cash from the Chivo Wallet,” said Bukele this Monday.

Through this network of “Chivo” points, Salvadorans will be able to receive the remittances that their relatives send them from abroad without charging a commission, said the president.

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The Congress of El Salvador, with a large pro-government majority, approved on June 9 the law that will convert bitcoin into legal tender in the country in September, when this measure comes into effect, with which it seeks to boost its economy. This will circulate at the same rate as the dollar.

Salaries and pensions will be deposited in dollars.

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