Bitcoin will become legal tender in El Salvador on Tuesday, September 7th. The Salvadoran government started buying bitcoin before the law went into effect. The first 200 coins have been bought and “many more” are coming, said President Nayib Bukele.
El Salvador begins bulk buying Bitcoin before Bitcoin becomes legal tender
The President of El Salvador, Nayib Bukele, announced on Monday: “El Salvador has just bought its first 200 coins. Our brokers will buy a lot more as the deadline approaches. ”At the current BTC price of $ 51,691, the 200 bitcoins are worth about $ 10.34 million.
Bukele also tweeted, “Tomorrow, for the first time in history, all eyes in the world will be on El Salvador.” The country’s Bitcoin law, passed in June, goes into effect Tuesday, September 7th. It makes Bitcoin legal tender in the country alongside the US dollar. The government recently released a video explaining what to expect.
In preparation for Bitcoin to become legal tender, El Salvador’s Congress passed a law on August 31 to create a $ 150 million fund to facilitate the exchange of Bitcoin for US dollars. The money for the new fund will be diverted from the current budget of the Treasury and administered by the El Salvador State Development Bank.
Meanwhile, a growing number of Bitcoin followers are planning to buy $ 30 worth of BTC to show their support for El Salvador’s Bitcoin law. $ 30 is also the amount President Bukele has promised anyone using the government’s Bitcoin wallet, Chivo.
Some people plan to spend more than $ 30. Tahini’s restaurant, for example, said it will “buy $ 300 an hour tomorrow” in support of El Salvador’s Bitcoin law.
According to Bukele, around 200 ATMs and 50 bank branches with the government’s Chivo wallet will be installed in different parts of the country, allowing users to deposit and withdraw money without commission.
However, not everyone is interested in Bitcoin becoming legal tender in El Salvador. A recent nationwide survey shows that seven in ten Salvadorans want the Bitcoin law repealed, and up to nine in ten respondents don’t have a clear understanding of what Bitcoin is.
What do you think of El Salvador buying a lot of Bitcoin and making cryptocurrency legal tender? Let us know in the comment section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
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