Shortly before the introduction of bitcoin as legal tender in El Salvador, the government bought several hundred BTC for its coffers.
President Nayib Bukele Announced buying 200 BTC in, for a total of 400 bitcoins now owned by the government. At current rates, that amount of BTC stands at $ 20 million. In a separate post, Bukele said the country plans to buy “many more” coins.
Salvadoran Guardian of BTC
Meanwhile, Salvadorans are preparing for the introduction of BTC as current legal tender today. For example, driver Ricardo López has spent the last few weeks trying to understand BTC. While bitcoin is now legally acceptable whenever possible, Lopez said he’s not sure he’ll accept it. However, if you do, it will immediately convert it to US dollars. “Most people are afraid of lack of information,” said the 37-year-old. She said.
In fact, polls show that the majority of Salvadorans oppose bitcoin as legal tender. A survey shows that 7 out of 10 Salvadorans even want the law repealed. Previously, a group of citizens in El Salvador, led by opposition politician Jaime Guevara, filed a lawsuit against the country for adopting BTC as legal tender. re have also been protests against the passage of the law and its imminent adoption by groups ranging from retirees to unions.
Read also Kraken’s ruling was a warning for non-compliance
Meanwhile, the Bukele government is taking various measures to facilitate the adoption of bitcoins. For example, it is launching a digital wallet called «Chivo», where new users can receive $ 30 in BTC. Chivo’s ATMs, which will allow consumers to buy bitcoins or convert them to cash, are also being installed across the country.
se initiatives and Chivo’s ability to convert are supported by a $ 150 million fund approved by the legislator this week. However, some economists wonder if it would be big enough in the event of a crash. refore, a possible drop in the price of Bitcoin could put the government under a broader tax burden.
Many countries in the region are also anxiously waiting to see if the introduction of cryptocurrency as legal tender will reduce the cost of remittances, which account for a quarter of El Salvador’s GDP. If so, many are likely to follow suit, according to the president of a regional development bank.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader on the information found on our website is strictly at your own risk.