El Salvador will create a trust to convert Bitcoin into dollar

The dDeputies of the finance commission of the Legislative Assembly of El Salvador agreed to create a Bitcoin trust of about 150 million dollars, with the possibility of expanding, which will allow the exchange and convertibility between crypto and the dollar.

The legislators modified the General State Budget this year to approve the request made by the Minister of Finance, Alejandro Zalaya, who asked to redirect 500 million dollars granted as loans by the Central American Bank for Economic Integration (CABEI), which would be reserved originally for the reactivation of the country’s small and medium-sized enterprises.

According to the modifications, the funds will be reallocated as follows: 150 million dollars were granted to the Development Bank of El Salvador, Bandesal, for the Bitcoin Trust; 53.3 million dollars for the execution of the plan, of which “USD 23.3 million are for the“ Cryptofriendly”. They refer to the spaces where the national executive is installing the cryptocurrency ATMs.

They are also granting 30 million dollars “for the digital wallet promised by President Nayib Bukele as an incentive for Salvadorans to make use of Bitcoin for their commercial transactions through the state’s digital platform called Chivo.”

The rest of the funds will be granted to different government entities, including 20 million for Bandesal, with the purpose of cancelling the temporary subsidy for the increase in wages to micro, small and medium enterprises.

Despite the criticism generated by the legal adoption of Bitcoin in El Salvador by the World Bank, the International Monetary Fund, politicians and citizens of the country, the measure will become effective with the entry into force of the Bitcoin Law this month and the government made a video to promote the benefits for the different sectors of the country.

M. Rodríguez

Source: diariobitcoin