El Salvador became the first country to adopt Bitcoin as its national currency, starting a monetary experiment.
President Nayib Bukele announced late Monday that his government had bought another 200 bitcoins ahead of the currency’s formal adoption in El Salvador. El Salvador now holds 400 Bitcoins, worth nearly $ 21 million at current trading levels.
Bitcoin will be used as a legal tender in El Salvador from Tuesday, along with the US dollar. Bukele announced that investors in the country will “buy much more as the deadline approaches”.
Bukele, the president who came to power in 2019, announced a plan for its introduction in June, and the country’s government presented this move as a way to increase job creation and improve economic development, by reducing dependence on the US dollar.
It also says that taxes can be paid in Bitcoin.
El Salvadors will be able to download the “Chivo Wallet”, an application made by the government that will deliver $ 30 worth of BTC to people to promote its use.
El Salvador just bought 200 new coins.
— Nayib Bukele 🇸🇻 (@nayibbukele) September 6, 2021
El Salvador has partnered with digital finance company Strike to create the necessary infrastructure. Cryptocurrencies are kept in digital wallets, rather than through a traditional bank account – meaning people in poorer communities with less access to banks could use Bitcoin as a way to increase access to their finances.
The government of El Salvador hopes that the use of Bitcoin as a legal tender will attract new investments. They also expect to reduce the fees paid for sending money from abroad.
The value of this cryptocurrency rose 1.49% last night to more than $ 52,680.
The price of BTC jumped in June, when the government of President Bukele adopted the appropriate law on cryptocurrencies – by 13%.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.