El Salvador became the third country in the world to buy Bitcoin, as the nation also became the first country to officially make Bitcoin legal tender, a move the government believes will be positive added value for the economy and society. .
The top 200 + 200 Bitcoins of El Salvador
El Salvador's President Nayib Bukele confirmed this in a tweet Monday, saying his government had bought its first 200 Bitcoins (quotation BTC) before the launch on September 7 of a new law to make Bitcoin legal tender.
“El Salvador has just bought its first 200 coins. Our brokers will buy much more as the deadline approaches, ”Bukele said.
He then confirmed the purchase of another 200 BTC in a tweet stating “El Salvador has just bought 200 new coins. We now have 400 Bitcoins ”.
The purchase is part of a new $ 150 million Bitcoin fund approved last week by the El Salvador Congress. The fund will be used to facilitate conversions from BTC to US dollars with the entry into force of the new law. At current prices, the purchase of BTC was worth just over $ 10,36 million. The Development Bank of El Salvador (Bandesal) has been appointed to oversee the operation of the Trust.
Who is in favor and who is against this law
In June of this year, El Salvador became the first country in the world to recognize Bitcoin as legal tender. Although the decision was met with praise by the Bitcoin community, the World Bank and the International Monetary Fund have warned that the new strategy is not a good idea. More recently, domestic opposition, especially among retirees, has seen hundreds of people across the country protesting the new Bitcoin law.
Although there is so much criticism from international bodies, the Bank of America would apparently be in support of the Bitcoin law. Surprisingly, the bank recently outlined at least four potential benefits for El Salvador accepting Bitcoin. In a report released in July, the bank said the country's adoption of BTC could simplify remittances, promote financial digitization, offer more choice to consumers and open the country to foreign investors.
The country has made significant investments to encourage the use of Bitcoin as legal tender. Over 200 government-backed crypto ATMs have been installed, which would allow local citizens to trade between Bitcoin and USD without paying fees. Additionally, $ 30 million was offered to offer incentives to encourage adoption of the government's digital wallet called Chivo.
And what do you think of the adoption of Bitcoin by the South American country? Is this a move that other nations may soon adopt as well? Let us know in the comments below.
