El Salvador Airdrop, Crypto ATM’s, and Colombia’s Blockchain Investment Program
El Salvador just had a press conference to discuss the plans for accepting bitcoin as legal tender.
Watch the full video here.
Today we’ll be discussing some very interesting things. Mainly regarding South America where there’s a lot of innovations going on in the cryptocurrency space even amidst this little bit of a dip that we’ve seen over the weekend.
El Salvador is giving out an airdrop for their new wallets and Athena is introducing crypto ATM’s in El Salvador. El Salvador’s bitcoin law becomes effective in September, and it has been getting a lot of hype since the Bitcoin Miami Conference.
It’s critical to note though that the wallet is government-approved, which is somewhat of a paradox as major benefits behind using bitcoin include holding sovereignty over your money. The purpose of the airdrop is to get people started using bitcoin and USD (which will be the two main currencies in the wallet). People will get an airdrop of $30, which they will receive once they’ve completed proper facial recognition and ID scanning.
It will be interesting to see though if the wallet will easily be able to transfer to any other wallet (for example Trezor or Ledger so you can have it in a hardware wallet).
“El Salvador’s Bitcoin Law, which is expected to make the crypto legal tender within the Central American nation, is set to come into effect on Sept. 7, Reuters reported Friday.”
The President announced in a national address that the government will use the Chivo e-wallet with the equivalent of $30 in bitcoin for everyone who downloads it.
“The $30 in bitcoin will be sent to users’ wallets once they verify their identities via the app’s face recognition software, according to a video of Bukele presenting the feature on Friday.
On June 9th the law passed by a supermajority in El Salvador’s legislature with 62 members voting in favor of the bill, 19 opposed and three abstained.”
Further potential uses for systems like this could include voting, as a lot of the corruption that we see around the world in voting comes from the actual trust of the organization.
The beautiful thing about blockchain is that you’re able to verify these things. The whole point of voting is having people verify their actual vote. There’s been speculation regarding election fraud in the U.S. and other markets. So even if it doesn’t get attention in the news, one of the beautiful things is it removes a barrier to entry from actually having to physically go to a voting place and go through this analog process. Putting this on the blockchain would make it a much more transparent, efficient system, and could raise the number of voters as well.
The 5% bitcoin pop has retraced back, as there were a bunch of options that recently expired. These options gave people the opportunity to buy the asset at a fixed price. Essentially they could buy it at a premium, at whatever price it was with a long-term expiring option, and sell them on the market for a quick profit.
Fundamentally something like this can’t move the market. You have to look at more of the long-term effects of what’s going on, the beautiful thing about bitcoin is that it doesn’t care what country accepts it, or what country bans it. Every ten minutes it just keeps generating new blocks, so it’s completely decentralized and emotionless.
It’s different than investing in a company for instance. Contrasting these two when it comes to analysis, there’s really none that covers the emotion of a CEO or forecasts if they’re going to quit the company or have some scandal. There’s none of that for bitcoin as it’s all open-sourced, programmable, decentralized.
The next article we’ll dissect is about Athena, which will install 1,500 ATM’s in El Salvador following the Bitcoin Law.
There’s a trend of countries in the emerging market trying to be the most innovative and use blockchain technology to their advantage. As we discussed earlier, blockchain voting could dismantle completely corrupt voting systems when you look at it objectively.
The ATM’s will let people with the Chivo e-wallet, withdraw money with a seamless interface.
Switching over to our final article analysis, where Colombia’s capital unveils a $750k blockchain investment plan.
“Companies can apply to the Bogota Innovation, Technology, and Creative Industries Fund for investment as of today.
Colombia’s capital city, Bogota, has a 2.8 billion Colombian peso ($750,000) investment program to finance blockchain companies.”
Although it’s not a whole lot of capital, it is encouraging to see they’re willing to finance blockchain-based companies.
“Investments of between roughly $2,600 and $13,300 will be made in 100 companies, which will receive advice on implementing blockchain technology into their business models, Colombian publication Semana reported June 22.
Companies can apply to the Bogota Innovation, Technology, and Creative Industries Fund for investment through the program starting today.
The program is part of a wider 8 billion Colombian peso ($2.8 million) investment into innovative industries aimed at advancing Bogota as a ‘smart city.’”
Bogota probably couldn’t be classified yet as a ‘smart city’, but when you look at Singapore, Shengzhen, Kuala Lumpur, and Vienna there are several international cities that are making progress towards becoming smarter.
If you have any questions let us know in the comments.
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