Bitcoin will become legal tender in El Salvador on Tuesday, September 7th. The Salvadoran government has begun buying bitcoin before the law goes into effect. The first 200 coins have been purchased and “much more” is coming, said President Nayib Bukele.
El Salvador begins mass buying of Bitcoin ahead of Bitcoin becoming legal bid
El Salvador’s president, Nayib Bukele, announced on Monday: ‘El Salvador has just bought its first 200 coins. Our brokers will buy much more as the deadline approaches. “By the present BTC priced at $ 51,691, the 200 bitcoins are worth about $ 10.34 million.
Bukele also tweeted: “Tomorrow, for the first time in history, all the eyes of the world will be on El Salvador.” The country’s Bitcoin law, passed in June, enters into force on Tuesday, September 7th. It will make bitcoin the legal tender in the country along with the US dollar. The government recently published a video explains what to expect.
In preparation for bitcoin becoming the legal tender, El Salvador’s Congress approved a law on August 31 to set up a $ 150 million fund to facilitate conversions from bitcoin to US dollars. Money for the new fund will be diverted from the current budget of the Ministry of Finance and administered by the State Development Bank of El Salvador.
Meanwhile, an increasing number of bitcoin supporters are planning to buy $ 30 worth of BTC to show their support for El Salvador’s Bitcoin law. $ 30 is also the amount that President Bukele promised to give to anyone who uses the government’s bitcoin wallet, Chivo.
Some people plan to spend more than $ 30. Tahinis restaurantfor example, said it would “buy $ 300 every hour tomorrow in support of El Salvador’s Bitcoin law.”
According to Bukele, around 200 ATMs and 50 bank branches are being installed with the government’s Chivo wallet in different parts of the country, where users can deposit and withdraw money without paying commissions.
However, not everyone is eager for bitcoin to become legal tender in El Salvador. One recently national survey shows that seven out of 10 Salvadorans want the Bitcoin law repealed, and as many as nine out of 10 respondents do not have a clear understanding of what bitcoin is.
What do you think about El Salvador buying a lot of bitcoin and making the cryptocurrency a legal tender? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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