El Salvador Officially Converts BTC to Legal Tender as Crypto World Eagerly Observes

El Salvador is officially the first country to adopt bitcoin as legal tender. president, Nayib Bukele, commented that the measure would make the majority of his citizens access banking services for the first time. Plus, you’ll save more than $ 400 million in fees on remittances sent home from abroad.

Last year alone, remittances in El Salvador reached nearly $ 600 billion. It represents about 23% of its total gross domestic product. Makes it one of the highest rates in the world.

Driving the adoption of cryptocurrencies

El Salvador’s parliament passed a law in June that would turn cryptocurrencies into a tender. As a result, citizens would use it for all goods and services other than the US dollar. In just 24 hours of discussion in parliament, Congress passed the bill. After all, the majority of the members are the president. allies.

Additionally, the government is installing more than 200 bitcoin ATMs across the country. Soldiers protect some of these to put an end to any fire started by opponents.

To encourage more citizens to board the ship, the government is offering $ 30 for each citizen. y receive the money in the form of bitcoins after registering in the Chivo wallet.

On Monday, September 6, El Salvador bought its first 400 bitcoins in two rounds of 200 each. market value of 200 bitcoins at the time of purchase was around $ 10 million. move pushed prices around 1.49% to $ 52,680. After the acquisition, the country promised its citizens that they would look forward to more purchases.

Many countries are working to limit the adoption of cryptocurrencies through increased regulations. However, Gerson Martinez, a bitcoin enthusiast, believes that El Salvador will not be the last country to legalize bitcoin.

El Salvador citizens remain skeptical

Regulators and experts alike have raised concerns about cryptocurrency volatility. That is why they think that the country is exposing its citizens to risks without any protection.

So does Laura Andrade, director of the Institute of Public Opinion of the Central American University. He said that the legislators decided without due citizen consultation.

According to a recent survey, around 70% of the citizens of El Salvador are against cryptocurrencies as a payment method. y will continue to use the US dollar, the country’s legal currency, for more than 20 years.

An economist from the University of El Salvador commented that the high volatility of bitcoin would harm consumers. As prices change, so do the prices of various goods and services. coin was below $ 30,000 in June after hitting an all-time high of around $ 64,000 just two months earlier.

Salvadoran Foundation for Economic and Social Development (HUSO) argued that it is unconstitutional to impose adoption on merchants.

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