September 7, 2021

It Happened – El Salvador Makes BTC Official Tender

El Salvador has become the first country to accept Bitcoin as a legal currency in a move that has got the world debating whether cryptocurrency should be used in this way.

The country has reportedly already bought its first 400 bitcoins, worth an estimated $21 million based on bitcoin’s value at the time of the announcement, according to a series of tweets by the country’s President – Nayib Bukele.

Millions of people are now expected to download the government’s new digital wallet app which gives away $30 in Bitcoin to every citizen.

More than 200 new cash machines are also expected to be installed across the country to ensure that dollars can be converted into Bitcoin.

The law for the new currency was approved by an overwhelming majority in June and it places BTC alongside the U.S. dollar as El Salvador’s national currency.

Some social media users in the country have expressed excitement and thrill for the idea – one man said on Twitter that the move means the country will “no longer be seen as a 3rd. World Country, but as Tech-Friendly Nation.”

He said he believed “the best is yet to come.”

But it is well-known that dozens of citizens in the country have been outraged with the idea since it was first announced several months ago. Recent protests in the capital, San Salvador, demonstrated a lack of confidence among residents who reportedly feel the measure is simply a distraction from the government’s controversial rule.

BTC has risen and fallen several times in the past year – from about $10,000 for a single coin in September 2020 to a high of $63,000 in April 2021 then falling to $30,000 in July this year.

But the value of BTC is said to have jumped around 2% to just under $53,000 on Tuesday morning following Bukele’s tweets, reported Forbes.

Abbianca Makoni

Abbianca Makoni is a content executive and writer at POCIT! She has years of experience reporting on critical issues affecting diverse communities around the globe.

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