As El Salvador Entering the Bitcoin era, its sky will be shining with the light of a row of drones. “We are holding an event,” said Brock Pierce, an American cryptocurrency communicator. “They did a big thing at Burning Man in the past. They did one during the Super Bowl. So we shot down the best drone crew in the world, and we will perform a great show in the air.”
Former child actor, current technology investor, notorious burnerAfter President Nayib Bukele announced that El Salvador would adopt Bitcoin as its legal tender starting on September 7, 2021, Pierce led a delegation of crypto entrepreneurs to Central American countries in June. Has been in touch with government officials in El Salvador — “I just spoke on the phone with the president’s brother,” he said — and businessmen who want to establish businesses in the country to meet their new encryption needs. He is now returning to El Salvador to participate in this important day. “The speed at which they can achieve this goal is amazing,” he said. “Like everything, I assume it was not perfect at first. But perfection is the enemy of progress.”
The speed at which the Bukele government conducted this experiment, which started the country’s Bitcoinization only 90 days after Parliament passed the law approving this change, is truly jaw-dropping. So much so that people doubt whether the country and its population will benefit from a longer preparation period. Or, at least, from greater transparency.
The key details on how Bitcoin is adopted in practice are still unclear or have not been disclosed until the last few days.A sort of Government regulations issued on August 27 It is determined that the Bank of El Salvador must provide bitcoins to exchange for U.S. dollars, and vice versa-when done through a government-backed wallet-no commission is charged; the regulation also requires all companies providing bitcoin-related services to register with government agencies and take anti-money laundering measures measure. (It is not clear what penalties will be imposed if you fail to do so.)
“This was done a week and a half before September 7,” said Mario Aguiluz, chief sales officer of IBEX Mercado in Guatemala, which sells bitcoin transaction and payment solutions and also does business in El Salvador. “You really have to ask if the government is ready. This is a mixed bag.”
There is also a lack of information about Chivo, the government’s own Bitcoin wallet.As we all know, it will work with 200 Chivo ATM machines, where users can exchange their bitcoins into cash without commission (the most recent one) economist story The report charges a 5% fee for converting U.S. dollars to Bitcoin, although a third-party wallet must be used for the publication), and each Chivo wallet will include $30 worth of Bitcoin as a free government gift. We don’t know who developed the wallet or ATM machine and the technology that supports it.
According to Chris Hunter, co-founder of Bitcoin company Galoy, such plans “change almost every hour.” According to reports, Hunter’s Bitcoin payment service in El Zonte, a coastal village in El Zonte, inspired the national project. He stated that as of early September, the situation was still “very unstable”. Just last week, he was convinced that Chivo will not be able to use the Lightning Network, a system that can significantly speed up bitcoin transactions, otherwise it will take a few minutes to get confirmation. “Now, it seems clear to me-if you make me bet-it will be activated on Tuesday,” Hunter said. The Salvadoran government did not respond to a request for comment.