The president of El Salvador, Nayib Bukele, reported on Monday, September 6, through his Twitter account, that his country bought its first 200 bitcoin coins. In addition, he assured that his brokers will buy much more as the deadline approaches.
According to an article shared by Bloomberg, enthusiasts and naysayers alike will be monitoring the experiment to see if a significant number of people want to transact with Bitcoin when it circulates alongside the US dollar, and if it brings any benefit to the violent and impoverished country.
In addition, he commented that its adoption will receive an initial boost from the government’s Bitcoin wallet, Chivo, which comes preloaded with $30 in the currency for users who register with a Salvadoran national identification number.
Businesses will have to accept the digital currency in exchange for goods and services and the government will accept it for paying taxes. The plan is the brainchild of 40-year-old Bukele, who says it will attract more people to the financial system and make remittances cheaper.
It should be noted that on June 10, the Bitcoin Law was approved, a regulation establishes that the exchange between the cryptocurrency and the dollar will be established “freely by the market”.
“The Legislative Assembly of El Salvador approved on Tuesday the Bitcoin Law, which will allow the legal course of cryptocurrency, with which the Central American country becomes the first in the world to recognize this cryptoactive as a legal exchange currency”, it was part of the note published by the news portal EFE.
What is the objetive?
According to the decree, the purpose of the law is to regulate Bitcoin as legal tender, unlimited in any transaction and under any title that public or private individuals or legal entities require to carry out.
The regulation, which was announced by President Nayib Bukele through Twitter, was introduced to the session of Parliament without further legislative discussion.