Bitcoin is now legal tender in El Salvador, and the country’s bitcoin supply has grown to 550 coins. The Salvadoran government started buying the cryptocurrency on Monday before the Bitcoin law goes into effect. On Tuesday, President Nayib Bukele said El Salvador bought the dip.
El Salvador is buying more bitcoin
El Salvador’s Bitcoin law went into effect on Tuesday, September 7th, making BTC a national currency alongside the US dollar.
El Salvador bought bitcoin before the bitcoin law went into effect. President Nayib Bukele announced on Monday that his government had started buying bitcoin. “El Salvador has just bought its first 200 coins. Our brokers will buy a lot more as the deadline approaches, ”he wrote. A few hours later he is tweeted: “El Salvador has just bought 200 new coins. We now hold 400 Bitcoin. “
Bitcoin price rose before the Bitcoin law went into effect. However, on September 7th around 11:00 a.m. EST, it plummeted from over $ 51,000 to below $ 43,000. At the time of writing, the price is around $ 46,883.
After the price fell, President Bukele said tweeted: “Buy the dip. 150 new coins added. “
The Salvadoran President followed up with another tweet at 11:25 a.m. EST when Bitcoin price stabilized at the $ 46,000 level. He wrote, “It appears that the discount is ending. Thanks for the dip @IMFNews. We saved a million on printed paper, “added:
El Salvador now holds 550 bitcoin.
The International Monetary Fund (IMF) has spoken out against the introduction of Bitcoin as legal tender several times. At the end of August, IMF legal advisors said that cryptocurrencies like Bitcoin are associated with “significant risks” and are not recommended as legal tender.
September 7 got off to a bumpy start for El Salvador when users complained that the government’s bitcoin wallet app, Chivo, was not available on various platforms including Apple and Huawei. When the app became available on Huawei, it couldn’t handle user registration, Bukele explained, adding that the government had decided to unplug it in order to connect to more servers and increase capacity. The problem appeared to be resolved at the time of writing.
What do you think of El Salvador buying the dip and increasing its bitcoin stash? Let us know in the comment section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.