El Salvador’s President Nayib Bukele confirmed on Monday that his government has purchased the first batch of 200 bitcoins (Bitcoin) Before the introduction of a new law that makes cryptocurrency legal tender on September 7.
“As the deadline approaches, our broker will buy more,” Bukele Said, Refer to the timetable for the full implementation of the new BTC legislation on September 7.
El Salvador has just purchased its first 200 coins.
-Nayib Bukele (@nayibbukele) September 6, 2021
The acquisition is part of a new $150 million Bitcoin fund approved by the Salvadoran Congress last week. The fund will be used to facilitate the conversion from BTC to U.S. dollars before the implementation of the new law. At current prices, the value of buying BTC is slightly higher than $10.36 million.
In June of this year, El Salvador became the world’s first Recognize Bitcoin as legal tenderAlthough this decision was praised by the Bitcoin community, critics of the World Bank and the International Monetary Fund warned that the new strategy is not a good idea.Recently, domestic opposition, especially among retirees, has seen hundreds of Protest against the new Bitcoin law.
Perhaps surprisingly, Bank of America recently outlined at least four potential benefits El Salvador accepts BitcoinThe bank stated in a report released in July that the country’s adoption of BTC can simplify remittances, promote financial digitization, provide more consumer choices, and open the country to foreign investors.
The new Bitcoin law enables Salvadorans to hold Bitcoin as part of a long-term investment strategy or withdraw in cash from 200 ATMs installed across the country. The country is also building infrastructure to support Chivo, the state-issued bitcoin wallet. Chivo Wallet will have its own ATM, allowing citizens to withdraw cash 24 hours a day without paying commissions.