The 30th of August 2021 will be remembered for a long time because it was the day when Bitcoin’s first commercial made by a government went live. The move came a week prior to the legalization of Bitcoin in El Salvador. The ad is being circulated on social media by thousands of cryptocurrency lovers who are hoping that their countries will follow in the footsteps of El Salvador soon.
The ad, which primarily informs people about the usage of Bitcoin as a normal currency, is animated; hence it feels really attractive. People have been told in the ad that the use of Bitcoin is not compulsory. Those who are more comfortable with the dollar can keep using it without any inconvenience, and the salaries of servants will continue to be paid in US Dollars. The government has launched a wallet app that will allow the use of both the dollar and Bitcoin, but they will receive a 30$ gift on their first consumption.
A few months ago, the Legislative Assembly had passed the Bitcoin Law, which states that all economic agents will have to accept Bitcoin if a customer uses it as a currency. But the President of El Salvador had hinted that there would be no compulsion. Instead, its use will be voluntary. The bill will be formally implemented from 7th September this year.
Salvadorans In A State Of Paranoia
Although President Bukele had been continuously promoting this decision on social media platforms still, public polls suggest that Bitcoin is not prevalent. Research conducted at Francisco Gavidia University shows that 53 percent of citizens are not happy with the move and only 13 percent voted in favour of this decision. There is a sparking debate going on in the country over the Bitcoin Law. On the other hand, financial institutes in the country want the government to stress the need for public education programs to eradicate uncertainty among people.
The reason why the government is so keen to take this decision is that it wants to remove remittance fees from the country because it amounted to a whopping 6 billion Dollars in 2020. This value is 23% of the country’s overall economic yield.
Despite this debate going on in Al Salvador and fear of rising money laundering and possible tax frauds, Cuba and Honduras are showing great interest in legalizing Bitcoin.