El Salvador Confirms Bitcoin Purchase Worth $10.50mln
El Salvador’s president, Nayib Bukele, announced Monday that his country had bought its first tranche of 200 Bitcoin (BTC) just before today’s implementation of a new legislation that would make the numero uno crypto legal tender.
“As the deadline looms, our dealers will be purchasing a lot more,” Bukele added, pointing to the September 7 deadline for effectively incorporating the proposed BTC law. The acquisition is a portion of a fresh $150 million Bitcoin fund approved by El Salvador’s Congress a week before.
The fund will be utilized to assist exchanges from Bitcoin to US dollars in the run-up to the revised law’s implementation. The BTC buying was valued at little more than $10.36 million at current rates. El Salvador turned out to be the first nation across the globe to lendorse Bitcoin as legal currency in June 2021.
Even though the Bitcoin community applauded the move, critics from the World Bank and International Monetary Fund cautioned that the latest approach is not a smart idea. In recent times, internal resistance, particularly among pensioners, resulted in hundreds of protests throughout the nation against the latest Bitcoin Law.
Remarkably, Bank of America has detailed a minimum of four possible advantages to El Salvador adopting Bitcoin. The bank stated in a July study that the nation’s embrace of BTC may simplify transfers, boost financial digitization, increase consumer option, and open the doors of global investment.
El Salvador has just bought it’s first 200 coins.
— Nayib Bukele 🇸🇻 (@nayibbukele) September 6, 2021
The latest Bitcoin Law allows Salvadorans to keep Bitcoin as portion of a long-term investment plan or withdraw it in the form of cash from the nation’s 200 ATMs. The government is also constructing framework to back the Chivo, a state-issued Bitcoin wallet. The Chivo wallet will comprise of its own ATM, allowing people to withdraw cash without paying fees on 24×7 basis.