El Salvador will grant permanent residency to bitcoin investor: Bukele

El Salvador will grant permanent residency to bitcoin investor: Bukele

BUSINESS & ECONOMY| Jun 10, 2021 | WOZINGA NEWS

El Salvador will grant permanent residency to bitcoin investor: Bukele

  • A law will grant permanent residency for any person who invests 3 BTC.
  • If imposed as law, it will be mandatory for all businesses need to accept bitcoin for goods and services.

By Marielle Petere Wozinga Journalist

El Salvador will grant permanent residency to bitcoin investor: Bukele

El Salvador President Nayib Bukele admits his next plans to administer another crypto-related law. The upcoming law will grant permanent residency for any person who invests 3 BTC.

The legislative votation happened early Wednesday. Out of 84 legislators, 32 voted for the bill; yet, 19 opposed, and three abstained. Now, Reuters disclosed, the use of the bitcoin adaptation bill as legal tender will become official law in 90 days. Still, using bitcoin is not compulsory. 

On Wednesday, CoinDesk reported that Bukele explained on Twitter Space with Nic Carter as the host. He plans to make a law granting permanent residency to any bitcoin investors. It is for the progress of the economy.

Action, adaptation

Based on the World Bank’s 2017 index, CoinDesk announced that 30% of Salvadoran adults have bank accounts. Considering over 6 million as the total population of El Salvador in 2019, still, the percentage

However, there are over a million Salvadoran immigrants in the US. Data showed that people in El Salvador remittances from immigrants living in other countries sent $5.92 billion in 2020.

Because of the government action, bitcoin adaptation ‘can be a game-changer.’ Carlos Miguel Rivas Carrillo told CoinDEsk. Since Carrillo is a lawyer, he said that the possible huge improvements could be to pay lower fees. No more use of Westernionion or MoneyGram.

El Salvador law, issues

If imposed as law, it will be mandatory that all businesses need to accept bitcoin for goods and services. But, Bukele addressed the volatility issues. He stated, “government will act as a backstop for entities that aren’t willing to take on the risk of a volatile cryptocurrency.”

To do so, the government will establish the Development Bank of the country. As for the possible results, the bitcoin will instantly convert to US dollars. Through this method, the government will handle and manage the risks of the merchant.

In the trust fund of Development Bank, about $150 million USD will hold. Then, the bank would apparently sell some of its bitcoin trust funds. This might happen in order to replenish the fund.

Another point he emphasized that though the government opens for bitcoin mining, El Salvador pursues to use geothermal energy.

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