The President of El Salvador announced that the government will provide 30 bitcoins (BTC) for $ 30 for all adult citizens of the country.
The announcement was hailed by bitcoiners, as advocates predicted that the El Salvadorian government would need to buy the necessary bitcoins it intends to distribute and add over $ 100 million in buying pressure to the markets.
Estimates for El Salvador’s adult population have been mixed: network analyst Willie Wu tweeted that the global bitcoin user base will grow 2.5% thanks to an influx of 4.5 million Salvadorans.
Others have found El Salvador’s adult population to be 6.5 million (which is actually the total population), with Yahoo Finance host Zach Guzman using that number for some rough envelope calculations, assuming bitcoin is worth $ 195 million. country.
Exact numbers are hard to come by, but Statista shows the population in 2019 was 4.72 million in 2019.
The euphoria on Twitter, however, may be a bit premature, as local Prensa Latina notes that El Salvadorians will only receive free bitcoin after downloading the government’s encryption app.
The news was announced at a press conference on June 25, where President Bukele stated that “the government wallet app will work even anywhere there is a mobile connection, and you don’t need to have a mobile data plan for the app.”
President Bukele also announced that the country’s famed bitcoin law, which recognizes BTC as the legal currency across the country, will take effect on September 7.
On the subject: Opposition Throws Constitutional Challenge to El Salvador’s Bitcoin Law
About two weeks ago, El Salvador passed a bitcoin law. Although this measure was approved by the global crypto community, the law met with resistance from the political minority party and the World Bank.