El Salvador became the first country in the world to buy Bitcoin!

Salvadoran President Nayib Bukele has just announced that the country has purchased its first 200 BTC. He also announced that this is not the last purchase. Thus, this Central American country became the first country to buy BTC.

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Salvador will legalize BTC as its national currency on September 7. According to Bukele, the move will save Salvadorans living abroad millions of dollars in commissions on the money they send home.

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Salvadorans last year sent nearly $6 billion to their families from abroad, mostly from the United States. The sum is equivalent to about 23 percent of the country’s gross domestic product.

Bukele, who became president in 2019, said last month that Bitcoin would save Salvadorans up to $400 million, which he said is spent each year in remittance

commissions.

Salvadorans skeptical

However, polls show that Salvadorans are skeptical about using the original cryptocurrency. According to them, its main drawback is its huge volatility. According to critics, BTC can increase regulatory and financial risks for financial institutions and expose poorer populations to losses. Interestingly, there have even been protests

in this Central American country. People took to the streets to express their opposition to a bill passed without public consulation.

While supporters portray Bitcoin

as an innovation that is independent of the sometimes capricious nature of governments, some believe it carries too much risk of facilitating money laundering and terrorist financing.

After Bukele’s bill was approved, credit rating agency Moody’s downgraded Salw

ador. The country’s dollar-denominated bonds have also come under question.

EDIT: Shortly after this article was published, Bukele published a tweet announcing more purchases. So El Salvador at this point has 400 BTC in its portfolio.

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