El Salvador Creates History by Integrating Bitcoin as Legal Tender, Buys $21 Million in BTC

By Prashant Jha
Is El Salvador Scaling Back Its Bitcoin Ambitions With IMF Deal?

El Salvador, the Central American nation created history again today after it finally integrated Bitcoin ($BTC) as legal tender in the country. The country has passed a Bitcoin law back in June and despite criticism and protest within the country, the small Latin American State has gone ahead with its plan. Nayib Bukele, the President of the country and also the main architect behind the Bitcoin law warned people that there will be a number of FUDs that will arise, but they should ignore it.

A day before the final implementation, El Salvador purchased 400 Bitcoin worth nearly $21 million. President Bukele also revealed that the brokers would continue to make Bitcoin purchases in the future as well.

The country has decided to call this historic day “Bitcoin Day” and moving forward people would be able to use Bitcoin for instant payments. Nearly 200 Bitcoin ATMs have been set up across the state to allow people to convert their Bitcoin to US dollars.

Advertisement
Advertisement

Can El Salvador Get Past Minor Roadblocks to Make BTC a Norm?

El Salvador faced criticism from around the globe include IMF, World Bank, JP Morgan, and many in the country itself who were not happy with the decision. A recent survey in the state revealed that nearly 70% of Salvadorians were not pleased with the decision to use Bitcoin as legal tender.

Mainstream media has also likened President Bukele to a dictator for moving ahead with the plan despite the country having no financial stability. Bukele on the other hand has ignored all the criticism and maintained the decision is for the greater good as more than 70% of the Salvadorian population remains unbanked.

President Bukele also launched a free Bitcoin airdrop campaign offering $30 worth of BTC to each adult citizen under the national Bitcoin wallet program in association with Chivo. Chivo would offer Bitcoin wallet services across the nation.

While Salvador has failed to garner support from world organizations, the crypto community has come in full support of the small nation from the day it announced its Bitcoin plans. Many in the crypto believe the decision by El Salvador was quite brave and it would create a domino effect for other financially unstable states to follow the same.

Advertisement
Prashant Jha
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.