El Salvador is the first country in the world to recognize Bitcoin as legal tender. Despite opposition from local groups, the government believes cryptocurrency will be of net benefit to the economy and society.
The President of El Salvador, Nayib Bukele, confirmed on Monday that his government had bought its first 200 Bitcoin (BTC) before the launch on September 7 of a new law established to make cryptocurrency legal tender. “Our brokers will buy a lot more as the deadline approaches,” said Bukele, referring to the September 7 schedule to fully implement the new BTC legislation.
El Salvador has just bought its first 200 bitcoins.
The purchase is part of a new $ 150 million Bitcoin fund approved by Congress in El Salvador last week. The fund will be used to facilitate conversions from BTC to US dollars in anticipation of the implementation of the new law. A
t current prices, the purchase of BTC was worth just over $ 10.36 million. In June of this year, El Salvador became the first country in the world to recognize Bitcoin as legal tender. Although the move was hailed by the Bitcoin community, critics of the World Bank and the International Monetary Fund have warned that the new strategy is not a good idea.
More recently, internal opposition, especially among retirees, has seen hundreds of people across the country protest the new Bitcoin law. Recent: President of El Salvador announces infrastructure is already under construction before country’s adoption of Bitcoin Perhaps surprisingly, Bank of America recently outlined at least four potential benefits for El Salvador from accepting Bitcoin.
In a report released in July, the bank said the country’s adoption of BTC could streamline remittances, promote financial digitization, provide more choices for consumers, and open the country up to foreign investors. The new Bitcoin law gives Salvadorans the option of holding Bitcoin as part of a long-term investment strategy or withdrawing it in cash at any of the 200 ATMs set up across the country.
The country is also building an infrastructure to support a state-issued Bitcoin wallet dubbed Chivo. The Chivo wallet will have its own ATM which will allow citizens to withdraw money 24 hours a day without paying commissions.