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El Salvador distributes bitcoins to its citizens for the first time.. Know the story

In a new step, Najib Bakila, President of El Salvador, announced offering the equivalent of $30 of the cryptocurrency "Bitcoin" to any citizen who subscribes to a digital wallet, in a move that indicates his heavy bet on the new law that makes it legal currency in his country.

For his part, Bakila said in a national speech that the government would create its own bitcoin wallet called “chivo,” a slang word for “awesome” in El Salvador, according to Russia’s Sputnik news agency.

He added that the money will be deposited in the account of any citizen who downloads the digital wallet, and registers as a user with his phone number and identity number, noting that the law making Bitcoin legal currency will enter into force on September 7.

The president, 39, reiterated his arguments that using cryptocurrency would help attract investment, increase consumption, and reduce the cost of sending remittances to the millions of Salvadorans working abroad.

But he said bank accounts in dollars would remain in dollars, and salaries and pensions would continue to be paid in dollars.

On the other hand, the Ministry of Finance of El Salvador said that it had requested the support of the World Bank to implement and regulate bitcoin as a legal currency in the country, but a spokesman for the World Bank assured it that the authority would not assist the El Salvador government in the implementation, according to the Spanish newspaper “Venáhero”.

“We are committed to helping El Salvador in various ways, including sharing transparency and regulatory processes. While the government has reached out to us for assistance with bitcoin, this is not something the World Bank can support given its transparency and environmental shortcomings,” the World Bank said in a statement.