Milestone in the world: Bitcoin is now legal currency in El Salvador

Key facts

:

  • President Nayib Bukele celebrated the milestone and referred to the learning curve involved.

  • El Salvador bought 400 bitcoins this Monday, prior to the law coming into force.

It’s official: bitcoin (BTC) is legal tender in El Salvador, the first country in the world to adopt the cryptocurrency created just over a decade ago. As expected, as of this Tuesday, September 7, the Bitcoin Law comes into force, which makes BTC a currency in the Central American country.

A few hours after the law came into force, President Nayib Bukele wrote via Twitter

assuring that, “like any innovation, the Bitcoin process in El Salvador has a learning curve”. To this he added that “every path to the future is like that and not everything will be achieved in a day, or in a month. But we must break the paradigms of the past.

Previously, the ruler announced the purchase of the first 200 BTC from his country, as reported by CryptoNews. To that amount, he later added another 200 coins. El Salvador currently has 400 bitcoins

to its credit, according to the president himself.

This Tuesday, September 7, was marked on all bitcoiners’ calendars for months, for marking a milestone in terms of cryptocurrency adoption in the world. As CriptoNoticias reported, in early June, the country’s Legislative Assembly approved the Bitcoin Law, which Bukele himself had announced days earlier

at the Bitcoin 2021 conference. Milestone in the world: Bitcoin is now legal currency in El Salvador Milestone in the world: Bitcoin is now legal currency in El Salvador President Nayib Bukele celebrated the day as historic. Source: Nayib Bukele.

To facilitate the adoption of the cryptocurrency in El Salvador, merchants will receive points of sale, bitcoin ATMs were announced to be installed in the country and the government created a wallet of its own, called <a href=”

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https://www.criptonoticias.com/comunidad/adopcion/bukele-wallet-bitcoin-gobierno-salvador-estara-disponible-septiembre/” target=”_blank” rel=”noopener”>Chivo Wallet. Through Chivo, Salvadorans will be able to make payments and convert funds to dollars, the other legal currency of the South American country.

Additionally, President Bukele seeks to incentivize the use of BTC with a $30 bonus in the cryptocurrency for Salvadorans who download Chivo Wallet. Those bonuses will come out of a $150 million fund approved by the Assembly last August 31.

For or Against the Bitcoin Law

The passage of the Bitcoin Law has not been without opposition. From the beginning, the announcement generated all kinds of reactions. And among those who rejected the measure, there has been everything: deputies calling for the reform of the law and protests demanding that it be repealed, although there has been no support for this measure in the Legislative Assembly.

Meanwhile, outside the Salvadoran borders, financial institutions such as the International Monetary Fund, the Inter-American Development Bank or JP Morgan and rating agencies showed rejection or cautious positions on the adoption of bitcoin in El Salvador. Among the world’s major banks, only Bank of America said that the Central American nation will benefit from the decision.

Even close to the entry into force of the Bitcoin Law, polls conducted by local media showed a high rejection of the cryptocurrency among Salvadorans. However, there is no turning back now: BTC is currency in El Salvador, the first country to adopt it in the world.

Bitcoiners outside of the country promoted aa massive collective purchase to show support for Salvadoran adoption. So far, the price has not been affected by this initiative. As the CryptoNews price calculator shows, BTC is now hovering above $51,000, after briefly passing $52,000 this Monday, following the announcement of the Bukele government’s purchases.

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