BITCOIN

On the eve of Bitcoin becoming legal tender, the Salvadoran government has already purchased the first batch of 200 bitcoins.

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On the eve of Bitcoin becoming legal tender, the Salvadoran government has already purchased the first batch of 200 bitcoins.

As September 7 approaches, El Salvador is set to become the world's first Bitcoin country to recognize Bitcoin as legal tender. President Nayib Bukele confirmed on Monday that the government has purchased its first 200 bitcoins ahead of the Bitcoin Law coming into effect, amounting to approximately $10.47 million at current prices. (At the time of writing, it was the afternoon of September 6 in El Salvador)

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As September 7 approaches, El Salvador is set to become the world's first Bitcoin country, where Bitcoin will be recognized as legal tender. El Salvador's President Nayib Bukele confirmed on Monday that the government has purchased its first batch of 200 Bitcoins, which amounts to approximately $10.47 million at the current price. At the time of writing, it is the afternoon of September 6 in El Salvador.

Nayib Bukele tweeted, "El Salvador just bought 200 coins. Our brokers will buy a lot more as the deadline approaches."

This purchase is part of a new $150 million Bitcoin fund approved by the El Salvadoran parliament last week.

Meanwhile, supporters of Bitcoin in El Salvador plan to purchase $30 worth of Bitcoin to show support for the upcoming Bitcoin law. The choice of $30 is because Nayib Bukele has promised to provide $30 worth of free Bitcoin to every Salvadoran citizen with a government wallet.

In June this year, El Salvador became the first country in the world to recognize Bitcoin as legal tender. Since then, El Salvador has faced criticism from both within and outside the country, with warnings from the World Bank and the International Monetary Fund about El Salvador's policies, local opposition, and resistance to Bitcoin, especially from retirees. However, the government of Nayib Bukele has not changed its policy.

Despite the challenges, a report from a U.S. bank in early August outlined at least four potential benefits of El Salvador's adoption of Bitcoin. The report stated that adopting Bitcoin could simplify remittances, promote financial digitization, offer consumers more choices, and open up investment to foreign investors.

To encourage long-term holding of Bitcoin by the people of El Salvador and as part of an investment strategy, El Salvador has installed 200 ATMs nationwide for cash withdrawals, making it convenient for people to use, and encourages the use of the national Bitcoin wallet, Chivo. The Chivo wallet also has its own ATMs, allowing citizens to withdraw cash 24 hours a day without paying a commission.

This article is authorized for reprint from Horizon News Network