El Salvador’s Legislative Assembly yesterday upheld legislation to permit for the creation of a $150 million Bitcoin Trust which indicates support for the development of crypto infrastructure and services across the country, tori4africa learnt.
The trust was endorsed yesterday with 64 officials voting in favour and 14 opposing the trust’s creation.
The Trust is designed to promote the conversion of Bitcoin into U.S. Dollars and support the rollout of crucial infrastructures needed for widespread adoption of crypto assets.
The vote arrives just one week before the country’s adoption of Bitcoin as a legal tender takes effect. The unavoidable legislation will comprehend Bitcoin as legal tender across El Salvador and is slated to take effect on the 7th of September. Currently, U.S. dollars are used as legal tender in the country.
The Development Bank of El Salvador (Bandesal) has been appointed to supervise the trust’s operation. The $150 million is to be pivoted from the country’s $500 million loan with the Central American Bank for Economic Integration (CABEI). The CABEI loan was initially taken for the purpose of economic recovery for small and medium-sized businesses.
Reviewing the loan collected, $23.3 million is reserved to fund the establishment of government-backed crypto ATMs, enabling local citizens to exchange between Bitcoin and USD.
$30 million has also been designated to offer inducements to encourage the adoption of the Government’s digital wallet named Chivo.