Most of the time, new projects and companies offer incentives for new users so that their client base will increase many folds. In the same way, El Salvador’s government seems to be doing the same with their 7 million citizens and the idea of Bitcoin.
The move of adopting Bitcoin has proved extremely beneficial for the state of El Salvador despite all the negativity and the withdrawal of the World bank’s support to help the country for adopting Bitcoin as a legal tender. El Salvador remained incumbent on its decision to adopt Bitcoin and even pay out the salaries of the people in Bitcoin. While that has not yet reached the final stage, the thought remains open for discussion.
Transaction Fees are Overtly High for Bitcoin
However, there are some more obstacles that the government of El Salvador has to face. To mainstream the idea of Bitcoin so that people familiarize themselves with the concept, El Salvador’s president issued a statement that entailed that all the citizens signing themselves up with a specific Bitcoin wallet will be awarded $30 in Bitcoin to enjoy from the state. There are more than 7 million citizens who are eligible for this little shenanigan. While the state’s motive can’t be clarified as if it was only an attempt on their part to make people engage with Bitcoin on a better note or something else, there is a significant problem.
When a transaction is made on the Bitcoin’s blockchain or even transferring crypto from one wallet to another, there is a heavy fee that is incurred which closely bring the matter to almost $15, so it seems that citizens will not be receiving a full of $30 unless the state wishes to pay the transaction fee out of its own pocket. This is the conundrum in which the state of El Salvador currently remains with respect to Bitcoin.