This comes a week before the Bitcoin currency is officially authorized in El Salvador, according to the government of El Salvador, which released the first Bitcoin advertisement ever made by a national government on August 30.
After being shared on Reddit by diarpiiiii, the video garnered over 2,000 upvotes in a short period of time. The advertising also makes it clear that the usage of Bitcoin is not needed; nevertheless, it does provide the option to pay or receive in either dollars or bitcoin.
According to Reddit user @felipebrunet, the video exposes the following:
“El Salvador will recognize bitcoin and the United States dollar as recognized legal currency starting in September. The usage of bitcoin is completely optional for you. You have the option of paying using Bitcoin or USD.
While the United States dollar will continue to be the currency used to pay for cash transactions, pricing, and salaries, new software will be developed to assist in tracking cash flows and exchange rates. From now on, you’ll be able to conduct free transactions in either dollars or bitcoin using the government wallet app at your convenience and without incurring any fees.
Your other financial transactions can be carried out using any other wallet besides your current one. To thank you for purchasing using our government wallet, we’re offering a reward of $30 USD! Using your phone to conduct transactions will eliminate the need to touch money and sign receipts or vouchers, which will save you time and money.
Furthermore, the seller is getting the same deal as the buyer, and there are no transaction expenses to worry about. You may also send and receive money from and to other countries at any time, without incurring any fees. Utilizing bitcoin makes sense, and it’s completely voluntary to do so. – The government of El Salvador”
Bitcoin will be accepted as legal tender in the Central American nation, and the US dollar will circulate alongside it as the country’s official currency. The country will be the first in the world to accept Bitcoin as legal tender.
According to a story in The Verge, the parliamentary body adopted a bill that mandates that every “economic agent must accept Bitcoin as a means of payment.” President Nayib Bukele has stated that the usage of the tool will be entirely voluntary for the public.
Salvadorans’ skepticism
According to a university research, despite the fact that Bukele utilized social media to promote Bitcoin and attack the opposition, the majority of Salvadorans are not interested in cryptocurrencies in general.
According to the results of a poll conducted by the Citizen Studies Center at Francisco Gavidia University, more than half of respondents thought the choice was either horrible or poor. That was not the case, as the data shown. 12.9% felt it was exceptional, and 6.5 percent thought it was very excellent.
According to the results of the survey:
If the government’s intention to make Bitcoin legal tender is true, 53.5 percent of those polled replied no, with only 12.9 percent responding affirmatively.”
What is in store for them next?
Beginning September 7, according to Bukele, Salvadorans will be able to withdraw dollars from the country’s 200 Bitcoin ATMs, which are now in operation. The construction of ATM stands in parks and public spaces around the nation has begun; one ATM has already been installed on Plaza Capitán, in the heart of the city, and is being guarded by military police.
Although there is a lack of information on how to embrace bitcoin and the risks associated with its use, the Bitcoin Law is igniting a national debate in the country. The country’s bankers have asked the government to explain its stance on bitcoin as a legitimate form of currency, and they also want public education campaigns to be launched in the country.
According to El Salvador’s Bukele government, the notion of abolishing remittance fees in the United States, which are expected to amount $5.9 billion in 2020, is a means of providing assistance to the working class.
In 2020, transfers were expected to account for about one-fourth of the country’s gross domestic product. Reduced remittance costs may have a significant positive impact on the economy of El Salvador, and anything that reduces the cost of moving money to the nation would be helpful.
However, although some have voiced concerns about the use of Bitcoin to aid money laundering and tax fraud, leaders in Cuba and Honduras have shown a stronger openness to examine the usage of the digital currency in their countries.
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