On Monday, September 6, 2021, the President of the Republic of El Salvador confirmed the purchase of the first shipment of bitcoin for his country.
El Salvador is the first country in the world to recognize bitcoin as legal, and the government of this country, despite the opposition of local groups, evaluates the impact of digital currencies on the economy and the people of the society very positively.
According to the Coin Telegraph, the purchased package contains 200 units of bitcoins, and this purchase was made before September 7, the date of implementation of the law on converting bitcoins into the common currency of this country.
“Our brokers will buy more of these cryptocurrencies as the deadline approaches,” said El Salvador President Nayib Bukele, referring to the September 7 timetable and full implementation of the new bitcoin rules in the country.
Last week, the El Salvadorian Congress approved the launch of a $ 150 million bitcoin fund, and now with the purchase of 200 bitcoins worth about $ 10.36 million, part of the fund’s capital will be raised. The fund was created to facilitate the conversion of bitcoins into US dollars and to advance the new executive law.
In June 2021, El Salvador became the first country in the world to recognize bitcoin as a legal entity. Although the decision was met with applause from the Bitcoin community, opponents of the plan voiced their opposition to the World Bank and the International Monetary Fund, warning that the idea would not be a viable strategy for the country.
Coinciding with these events and the nationwide protests of domestic dissidents in the country, Bank of America, in support of the El Salvador government, listed at least four potential positive effects of accepting bitcoin in the country:
- Facilitate the sending of financial remittances
- Digital promotion of financial affairs
- Provide more options for the consumer
- Provide suitable conditions for foreign investors
The new bitcoin law allows El Salvadorians to cash in on their digital assets as part of a long-term investment strategy or to turn them into cash through 200 ATMs across the country.
The country is also building infrastructure to support the state-owned bitcoin chivo. The wallet will have its own ATMs, and citizens can convert their bitcoins into cash at any time of the day or night without paying a fee.
What do Wironal users think about El Salvador’s actions regarding Bitcoin?
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