Bitcoin Starts Its New Test As El Salvador's Bitcoin Law Goes Into Effect

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Bitcoin has to face a new test as El Salvador's Bitcoin Law has come into effect and the cryptocurrency is now officially the country's national currency with the US dollar.

The Salvadoran President, Nayib bukele, in the first hour of September 7, he got the ball rolling by announcing that El Salvador had bought his first 200 Bitcoin. Nayib bukele ad:

So far, El Salvador has bought 400 Bitcoin (BTC), in two tranches of 200, and promised more to come. At the current price of the coin, this purchase of 400 BTC amounts to around $ 21 million. To incentivize citizens to use Bitcoin, the government is giving $ 30 in free bitcoins to citizens who sign up for their national digital wallet, known as Chivo. Also, foreigners who invest in three Bitcoin will be granted residency. The government is also installing 200 Bitcoin ATMs across the country for users to convert their Bitcoin into cash.

El Salvador's Bitcoin law was passed in June 2021 which allowed the world's largest crypto asset, Bitcoin, to be accepted as a tender for all goods and services in the country, along with the US dollar. The bill was presented by the President and approved within 24 hours of its presentation to Congress.

On Tuesday, September 7, El Salvador's Bitcoin law came into force. With this, a big test for the coin has also begun, as not everyone is happy with this Bitcoin law. Experts and regulators have highlighted concerns about the notorious volatility of the cryptocurrency and the lack of protection for its users. The IMF and the World Bank have also issued repeated warnings about the consequences of this move.

A recent poll also showed that the majority of the 6.5 million people living in the country had rejected the idea of ​​using Bitcoin in favor of the US dollar. So this is a big test for Bitcoin and President Bukele knows it. In your recent comments, said:

However, Nayib Bukele believes that Bitcoin will give many Salvadorans access to banking services for the first time and will save millions in remittance fees that represent more than a fifth of the country's GDP.




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