El Salvador Congress approves $150 million Bitcoin Trust

September 1st news, according to foreign media reports, on the 31st, the Salvadoran Parliament approved a $150 million Bitcoin Trust Fund with 64 votes in favor and 14 votes against to promote the convertibility between Bitcoin and the US dollar and hedge the impact of price fluctuations on the Salvadoran people.

El Salvador is the first country in the world to use cryptocurrency as legal tender. It will be officially adopted on September 7. Lawmakers said that the funds of the new fund will be diverted from the current budget of the Ministry of Finance and will be managed by the El Salvador National Development Bank (BANDESAL).

President Nayib Bukele announced the plan in June, revealing that at least 200 ATMs and 50 information centers from the government digital wallet app "Chivo" will be installed across the country, allowing users to deposit and withdraw Bitcoin without paying commissions. The Bitcoin Trust will help airdrop $30 worth of Bitcoin to Salvadoran citizens who register with Chivo.

El Salvador’s parliament said that according to official estimates, the country currently has 50,000 bitcoin users and hopes to increase that to 4 million.