Every adult citizen in El Salvador will receive $30 worth of bitcoin when they download and register the government’s cryptocurrency app, President Nayib Bukele announced late Thursday as he unveiled details on how the nation would become the first to make bitcoin legal tender.
In a national address Thursday, Bukele revealed the “bitcoin law” would come into effect on September 7.
The president addressed widespread concerns that bitcoin use might become mandatory in El Salvador—which will continue to use the U.S. dollar as legal tender—reassuring citizens the “use of bitcoin will be optional,” Reuters reported.
Salaries and pensions will continue to be paid in dollars, he said, and anyone being paid in bitcoin “can choose to automatically receive it in dollars.”
Bukele said the adoption of bitcoin as legal tender would not be the same as when El Salvador adopted the dollar and bank accounts converted the former currency of colóns, to dollars.
Bukele reiterated that one of the key drivers of the law is to help people sending remittances back to El Salvador, as the payments typically suffer from high transaction and commission costs.