El Salvador President Nayib Bukele has confirmed the purchase of the first 200 bitcoins for the new government fund.
The Legislative Assembly of El Salvador last week approved the creation of a $ 150 million bitcoin fund, which will be used to develop cryptocurrency infrastructure and services in the country. The fund’s assets will allow residents of El Salvador to freely exchange bitcoins for dollars and vice versa.
“El Salvador just bought its first 200 bitcoins. Our brokers will buy much larger volumes as the deadline approaches, ”Bukele wrote.
On Tuesday in El Salvador, a law came into force, according to which bitcoin is recognized as an official means of payment on a par with the US dollar. Funding for the fund comes from a $ 500 million loan from the Central American Bank for Economic Integration (CABEI). Initially, this loan was issued for the needs associated with the restoration of small and medium-sized businesses.
Earlier, Bukele promised that residents of El Salvador who install the official Chivo crypto wallet will receive $ 30 in bitcoin. From what funds this initiative will be financed, taking into account the country’s population of 6.5 million people, is unknown.
Legal adviser to the president, Javier Argeta, said in an interview on Monday that entrepreneurs who refuse to work with Chivo and conduct Bitcoin transactions could be subject to sanctions under consumer protection law. Bukele himself said earlier that a business would be able to refuse to work with bitcoin, but in this case it risks losing part of its clientele.
Against the background of news from El Salvador, the bitcoin rate went up
Bitcoin (BTC) responds positively to the entry into force of the Salvadoran law on the recognition of cryptocurrency as legal tender.
During the Asian session on Tuesday, September 7, BTC rose in value to $ 52,700 on selected trading floors. The capitalization of the leading digital currency has come close to $ 1 trillion.
The day before, there were calls on social networks to invest at least $ 30 in bitcoin. This is the amount in cryptocurrency that every citizen of El Salvador who has registered their own cryptocurrency wallet can receive.
Apparently people in Brazil and all over the world are planning to convert $30 worth of their local fiat into BTC this Tuesday September 7th to commemorate El Salvador’s law making the open-source, decentralized, debasement-proof currency legal tender 🌎https://t.co/z2GUUVpc31
— Alex Gladstein 🌋 ⚡ (@gladstein) September 5, 2021
MicroStrategy CEO Michael Sailor welcomes the law ‘s entry into force . He announced his readiness to invest $ 30 in BTC in solidarity with the Salvadorans. He even asked his subscribers if they were ready to follow his example. 83.9% of survey participants joined Sailor.
On September 7, El Salvador will officially begin using #Bitcoin as its national currency alongside the U.S. dollar. Every cyber hornet 🐝 I know is planning to buy $30 in BTC tomorrow in solidarity with the people of #ElSalvador and their leader @nayibbukele. Will you join us?
— Michael Saylor⚡️ (@michael_saylor) September 6, 2021