El Salvador, a county often criticized by the West, has become the first country in the world to recognize the bitcoin as a legal tender. Following the move, the country has received unexpected help from corrupt investors on Reddit.
Alt Salvador’s bitcoin is backed by cryptocurrency investors.
On Tuesday, September 7, El Salvador became the first country in the world to recognize the bitcoin as a legal tender.
El Salvador’s Legislative Assembly approved the Bitcoin Act in June and approved a $ 150 million trust in late August to automatically convert the bitcoin into US dollars.
Under the new law, any bitcoin transaction will have unlimited circulation, and the exchange rate between the cryptocurrency and the US dollar will be set freely by the market. The law requires all entities to accept bitcoins as payment.
The government of Vice President Buckley said the legal bitcoin would save millions of dollars in relocation fees for Salvadorians living abroad. Last year, El Salvadorians spent 400 400 million, 22 percent of El Salvador’s GDP.
From Tuesday, September 7, citizens who decide to install a cryptocurrency app on their mobile phones will receive a bitcoin bonus equal to ڈالر 30 per dollar.
The government is setting up more than 200 “chew wallet points” across the country – bitcoin ATMs.
On Monday, September 6, Buckley posted a tweet with the hashtag #BitcoinDay to buy # 200 Bitcoins. According to cryptocurrency exchange platforms, the bitcoin price exceeded 52 52,000 on September 6.
Therefore, the purchase price of El Salvador is over 10 10 million.
The population prefers the US dollar.
According to a survey by the University of Central America’s Institute of Public Opinion:
- 66.7% of El Salvador’s population believes the bitcoin law should be abolished.
- 78.3% of citizens have little or no interest in downloading the Chivo app to their phones.
- 71.2% prefer to use the dollar.
Under the Currency Integration Act, two currencies are considered official currencies in El Salvador: the US dollar and the colon, although the latter is not in circulation.
Laura Andard, director of the Institute of Public Opinion, claims that people are resisting the new law because they do not see the bitcoin wallet as a way to improve their finances.
Why does El Salvador need a bitcoin?
El Salvador’s move has received a negative response from the West, as the decision. Reserve breaks monopoly on currencies – dollar and euro.… In fact, the plan aims to revive the country’s economy, which has been stagnant since the dollarisation in 2001, with an average growth rate of two to four percent. In 2020, the GDP fell by 7.9 percent due to 19 epidemics.
Bakile, 40, is not afraid of anything, as he has a constitutional majority in parliament and is popular with the elite. Last week, a chamber of the Supreme Court, appointed by parliament in May, gave it the green light for re-election. Bakil’s presidency ends in 2024.
Corrupt investors offer help to El Salvador.
The project received unexpected support on the page of a famous investor. Reddit. Platform It was specifically offered to coordinate بی 30 purchases from Salvadoran per BTC platform.
“I mean, more than a pump. This is the first time a nation has adopted a bitcoin. It’s an important time in the bitcoin. Let’s show Salvador what it’s all about.” They are on the fence, that the bitcoin has value for them and for everyone.
According to the poster, which is very active in the community, if each of the 3.3 million Reddit members buys 30 30 in bitcoins, the total purchase will be .5 99.5 million.
The poster proposal has received responses on Reddit, with most of them supporting the move. The message quickly went viral and reached large investors.