The President of El Salvador, Nayib Bukele, recently stated that his government has bought its first Bitcoin. On Monday, the Salvadorian President tweeted out that the government had purchased their first 200 Bitcoins, ahead of the rollout that was initially planned for Tuesday amidst the setting of a new law that would recognize the leading crypto asset in the market as a legal tender.
El Salvador is the first country in the world that has recognized Bitcoin as a legal tender and permitted its utilities as a means of payment. Although local groups and other crypto sceptics have advised against the law, the Salvadorian government passed bills by the parliament and approved the acceptance of Bitcoin nationwide. The government believes that crypto assets will bring net positive for the economy and society.
Although the decision to recognize Bitcoin as a legal tender was praised by the crypto community, critics from the World Bank, and International Monetary Fund advised against it. The Detractors criticized El Salvador’s new Bitcoin strategy, stating it was not a good idea as much as the community bullishly claimed. Recently, internal opposition in the country was met with hundreds of protestors across El Salvador against the new Bitcoin Law.
President Nayib Bukele referred to the September 7, Tuesday rollout in a tweet stating “Our brokers will be buying a lot more as the deadline approaches” implying that the government might still purchase more Bitcoins. The timetable for the new Bitcoin legislation to be implemented is nearing, and the government has already bought a small amount of Bitcoin.
The government’s first purchase was a part of a new Bitcoin fund that was passed by El Salvador’s Congress last week. According to the press reports, the $150 million Bitcoin fund will be used to facilitate the conversions of cryptocurrency into fiat currency, specifically Bitcoin into the United States dollars leading up to the implementation of the new Bitcoin law. Using the current price rate, the amount of Bitcoin the Salvadorian government purchased before the deadline was worth over $10.36 million.
The New Bitcoin legislation allows Salvadorians to hold crypto assets as a part of a long-term investment strategy, or they can withdraw it in fiat currency from any ATMs installed throughout the country. El Salvador is also launching a state-issued wallet, known as Chivo, which will allow citizens to withdraw cash without paying commissions.