The purchase is part of El Salvador’s $ 150 million Bitcoin fund to facilitate the implementation of its controversial law to recognize Bitcoin as legal tender
As El Salvador prepares to implement its new law recognizing bitcoin as legal tender, President Nayib Bukele has confirmed that the country has bought 200 bitcoin to facilitate the introduction of the law.
The latest development builds on what is known as the largest test of Bitcoin in its 12-year history, as the crypto community in particular and the financial world in general are excited to see whether the Bitcoin experiment in El Salvador will find significant participation and analyze, whether crypto is the solution to the impoverished country’s economic troubles.
The recent purchase of Bitcoin, valued at just over $ 10.36 million, is part of El Salvador’s $ 150 million Bitcoin Fund, which was approved by Congress last week, to make BTC-USD conversions in light of the new law to enable.
“Our brokers will buy a lot more as the deadline approaches,” added the president in his tweet noting the deadline for the official introduction of the law.
The law recognizing Bitcoin as legal tender was passed in June, making El Salvador the first country in the world to do so.
While the crypto community welcomed the decision as forward-looking and progressive, the World Bank and the International Monetary Fund (IMF) warned of the unintended effects of the law’s hasty implementation. Bank of America, on the other hand pointed point out that the country’s adoption of Bitcoin is expected to streamline remittances, improve consumer choice, encourage overseas investors, and fuel the digitization of the financial world.
However, criticism of the law was taken up by the Salvadoran public, who protested against its implementation. The government replied that no one was forced to use Bitcoin and those who wanted to stay away from crypto can still do so.
Infrastructure development to implement the law continued with the installation of over 200 Bitcoin ATMs across the country. These ATMs support El Salvador’s government-sponsored Bitcoin wallet Chivo.
It remains to be seen where these developments will lead, as El Salvador will begin Bitcoin transactions from today.