El Salvador Is Giving $30 In Bitcoin To Its Citizens

Ahead of the September 7 bitcoin law implementation date, El Salvador President Nayib Bukele has unveiled a new government crypto app. The government-issued app, which is known as Chivo, will be used to distribute the bitcoins to citizens.

According to reports, every citizen that downloads and registers for the app are automatically eligible for the $30 bitcoin airdrop. The president has said that the move is in an effort to bolster the adoption of bitcoin across the country.

Related Reading | Crypto Isn’t Money, Annual Economic Report On Bitcoin

El Salvador became the first country to adopt bitcoin as legal tender when it announced it was doing so back in June. The announcement took place at the Bitcoin Conference held earlier in the year in Miami. Further, the president stated that it would be granting citizenships to individuals who invest 3 bitcoins into the country’s economy.

The plan was made public during a public address by the president last night.

Why A Government-Issued Wallet?

A simple answer to this question is logistics. The anonymity of bitcoin makes it so that people can create multiple wallets from other wallet providers. This would be a nightmare for the government to try to discern who was real or not, and who had already received their airdrops and was applying again. The government-issued wallet would ensure that the government can confirm that the users were actual citizens. And it will help to mitigate the likely issue of people trying to receive more than one airdrop.

It would also mean the adoption of a government crypto wallet. This could act as a central database for people using the coins.

bitcoin chart from TradingView.com

Bitcoin back in green | Source: BTCUSD on TradingView.com

Just because it’s government-issued does not mean people have to leave their coins in the wallet. Once they get their $30, they can simply transfer it out to any wallet of their choice. But there will at least be a record that they had already received their airdrop.

The airdrop is…

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