Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.
The new BTC Trust will allow merchants in the region to instantly convert their Bitcoin in US dollars.
El Salvador, a leader among the first countries to adopt cryptocurrency as a legal tender, has made another important announcement. El Salvador will be setting up a Bitcoin trust worth $150M to aid exchange formalities and allow merchants across the region to convert their BTC into US dollars at a rapid pace.
Bitcoin Trust in El Salvador to Simplify Direct BTC-USD Exchange
According to the reports published by El Diario de Hoy, the authorities have set up a BTC trust fund that will aid merchants across the region to convert their crypto payments into US dollars. El Salvador’s Minister of Economy has further confirmed that there is a strong possibility of increasing the current $150M allocation value to facilitate smooth BTC transactions and conversions in the country. The particular announcement was made on Monday by the Finance Commission of the Legislative Assembly.
The trust has been set up to help merchants and the general population conduct simplified crypto transactions. El Salvador’s government has already made BTC a legal tender in the nation allowing its citizens to make purchases and payments in cryptocurrency. The trust will further expedite such transactions by facilitating faster processing and conversion of BTC into US dollars.
El Salvador has been one of the first few countries that have adopted cryptocurrency as a legal tender and has urged its citizens to not be reluctant while conducting crypto transactions. A legitimate bill citing BTC to be recognized as a legal digital currency in the country was already passed in June. The bill is said to come into effect from September 7 enabling the general populace and businesses to make purchases and accept payments in Bitcoin.
El Salvador’s government has also clarified that the businesses that are unwilling to adapt to the new tender will not be penalized however they are expected to learn the nuances of the new bill to clear their doubts and embrace the new digital change.
The following trust has been set up by the Development Bank of El Salvador to promote prompt processing and conversion of BTC in US dollars without posing any additional risks to the merchants and businesses.