El Salvador becomes the first country to adopt Bitcoin
September 7, 2021 marks a major day in the history of Bitcoin (BTC) and cryptocurrencies. El Salvador, a small nation in South America, officially becomes the first country in the world to recognize Bitcoin as a legal tender. A look back at the last few weeks leading up to this historic day.
Early June – Rumors of a “Bitcoin Law
At the Bitcoin 2021 conference held in early June in Miami, an unexpected speaker attracted all the attention. El Salvador’s President Nayib Bukele announced his ambition to introduce a bill in the country’s Assembly to recognize Bitcoin as a legal currency.
On social networks, this announcement had the effect of a bomb, igniting the entire crypto-sphere. In just a few days, the South American country’s president became a Twitter star, showering us with daily posts about the progress of the project.
Three days after the first rumors, on June 9, 2021, the Assembly of El Salvador met. Without much difficulty, the “Bitcoin Law” project was approved by the majority, with 62 votes for 84. In order to organize the implementation of this law, a 90-day deployment period was announced. The target date for the launch is September 7, 2021.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
– Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
On his Twitter, Nayib Bukele actually posted a translation of the law detailing the new provisions. It states that about 70% of the population of El Salvador does not have access to traditional financial services, justifying the need for the adoption of a digital currency.
Mid-June – A divisive decision
Despite the general excitement that has excited the entire cryptosphere, the decision has not been unanimous among the main stakeholders. While the Central American Bank of Economic Integration affirmed its support regarding the arrival of Bitcoin in El Salvador, the International Monetary Fund (IMF) remained very wary.
A few days after these respective exits, El Salvador requested the assistance of the World Bank to accompany it in its transition. A request that the institution was quick to reject, reflecting the opinion disparas initiative.
Within the country itself, opposition has also begun to emerge. Some citizens and members of political parties opposed to Nayib Bukele’s party rose up against the Assembly’s decision to accept the June 8 law as unconstitutional.
End of June – El Salvador holds its course
Against this backdrop of questions about the future of Bitcoin in El Salvador, the country’s president spoke on television to reassure. Yes, he intends to go through with the project. He also took the opportunity to announce the launch of a digital wallet, Chivo.
In a simplified way, this wallet should play the role of a safe to store Bitcoin (and incidentally dollars) as well as a means of payment. Usable from the day the law is implemented, September 7, 2021, this wallet should be available on Android, iOS and Huawei.
In a related development, Nayib Bukele also announced that the government is planning a massive Bitcoin airdrop for its citizens. Each of the 4.5 million adults living in El Salvador is eligible to receive a gift of $30 in BTC. A significant amount when you consider that the average income in the country is close to $250.
Moreover, in a bid to make the purchase of cryptocurrencies accessible to everyone, the Salvadoran government has announced its intention to install Bitcoin ATMs on its territory. While there were only about 100 ATMs across South America, more than 1,500 units will be deployed by the company Athena.
A historic day for cryptocurrencies
Last week – Everything accelerates
This Monday, September 6, 2021, El Salvador bought its first 200 bitcoins, becoming the first country to hold cryptocurrencies. Its president made the announcement himself on his Twitter page, indicating that “brokers will be buying many more as the deadline approaches.”
El Salvador has just bought it’s first 200 coins.
– Nayib Bukele 🇸🇻 (@nayibbukele) September 6, 2021
A few hours later, he announced a further purchase of 200 Bitcoins, bringing the country’s total balance to 400 Bitcoins. The price of the asset soon climbed accordingly, printing an almost 2% increase in an hour and peaking at $52,650.
In order to pay tribute to El Salvador’s historic adoption, the crypto-sphere wanted to do things their own way. On <a href=”https://www.reddit.com/r/Bitcoin/comments/phgtq2/so_we_all_buying_30_worth_of_bitcoin_on_tuesday/?utm_medium=android_app&utm_source=share” target=”_blank” rel=”noopener”>a Brazilian sub Reddit, more than 3 million people decided to coordinate to buy $30 worth of BTC simultaneously, in reference to the massive airdrop the country will offer to its inhabitants.
This initiative quickly spread to the entire crypto-sphere, including the French. At 6pm this September 7, 2021, many French people symbolically bought 30 euros worth of BTC.
– Thomas Cryptoast (@th_toast) September 7, 2021
D-Day – El Salvador officially adopts Bitcoin
This is it, we’re there! One of the most important days in the history of the small South American country has arrived. Despite the reluctance of some of its inhabitants and a month and a half after its approval by the country’s Assembly, the “Bitcoin Law” has become effective as of September 7, 2021.
With a few hours delay, the Chivo digital wallet was released on iOS, Android and Huawei smartphones. However, due to the high demand for downloads, the country was forced to suspend its use until further notice.
¡Vaya! Por fin alguien..
Ya disponible en Huawei AppGallery.
Link de descarga: https://t.co/YGNOLh55Sx
Las demás tiendas no deberían tardar en mostrar la disponibilidad de la app. pic.twitter.com/Ai1JT7BOzA
– chivo (@chivowallet) September 7, 2021
While Bitcoin’s price collapsed by 18% in just a few hours, from $52,000 to around $43,000, El Salvador’s ardor has not been dampened. “Taking advantage of this drop,” as the president announced on Twitter, the country has once again purchased a batch of 150 bitcoins.
Buying the dip
– Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
Undeniably, September 7, 2021 marks a major milestone in the history of cryptocurrencies. For now, the first few hours are written in the sign of discovery. Some are inThe others are already satisfied with the pool of opportunities available to them.
For our part, it is certain that during the next few weeks, we will continue to pay special attention to El Salvador, this small South American country that has definitely not stopped making news.
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About the author : Lilian Aliaga
Freelance writer located between Paris and Toulouse. I want to share my passion for the world of crypto-currencies to as many people as possible. I am also interested in technical analysis and trading.
All articles by Lilian Aliaga.