El Salvador buys its first 200 bitcoins and announces more investments in BTC

Key facts

:

  • It is unknown whether the purchase was made through the central bank or the presidency.

  • At the current price of BTC, the government would have invested more than $10 million.

The president of El Salvador, Nayib Bukele, announced during the afternoon of this Monday, September 6, that his country bought 200 bitcoins (BTC). The head of state revealed that this is the first of several acquisitions that the nation will make, in the coming hours or days, to invest in the main cryptocurrency in the market.

“El Salvador has just bought its first 200 coins. Our brokers will buy many more as the deadline approaches #BitcoinDay #BTC,” was the message shared by

the president through his Twitter account.

It is unclear what mechanism the country used to buy its bitcoins, i.e., it is unknown whether the country used exchange services, over-the-counter (OTC) markets or other exchange platforms. It was also not reported whether the investment was made by the Central Reserve Bank of El Salvador or was an investment made directly from the presidency.

At the current price of BTC the government would have disbursed more than 10 million dollars for the 200 cryptocurrencies. According to the CriptoNoticias price index

, one bitcoin is currently trading at $51,900 per unit.

Bitcoin, legal tender

Bukele’s announcement comes a day before El Salvador formalizes the execution of the so-called Bitcoin Law. The State will become, as of this Tuesday, September 7, the first in the world to recognize BTC as legal tender, along with the US dollar. Its acceptance in commercial establishments will be mandatory, with some exceptions, and the dollar will remain the unit of account. Users and businesses will have the option of keeping their BTC or converting them to dollars.

“Tomorrow, for the first time in history, all the eyes of the world will be on El Salvador. Bitcoin did this. FUD (fear, uncertainty and doubt) is creeping in. Tons of it. Stay focused,” Bukele commented minutes before revealing the cryptocurrency purchase.

bukele-tuit bukele-tuit Bukele unveiled the BTC purchase and announced that they will continue to buy cryptocurrencies. Source: @nayibbukele / Twitter.

According to Buy Bitcoin Worldwide records , El Salvador joins Bulgaria and Ukraine as the countries that hold bitcoin. However, the latter two are <a href=”https://www.coininsider.com/bulgarian-government-owns

3-billion-usd-bitcoin/” target=”_blank” rel=”noopener”>seizures of “criminal organizations”, in the case of Bulgaria, and of BTC positions of its public officials, in the case of Ukraine.

El Salvador generated a media stir three months ago when it announced that it would adopt bitcoin as legal tender. The Legislative Assembly expressly approved the Bitcoin Law for its implementation, which comes into force tomorrow Tuesday, a fact that will be reported in detail by CryptoNews.