It’s September 7th and El Salvador’s Bitcoin law has officially gone into effect three months after Parliament approved the historic vote. The Central American nation is now the first country to recognize Bitcoin (BTC) as legal tender.
The President of El Salvador, Nayib Bukele, comments in a Tweet: “3 minutes to make history”.
Nevertheless, the first day of the Bitcoin experiment in El Salvador was marred by server capacity errors suffered by the state-issued Chivo wallet. Regarding the situation, President Bukele® said commented:
The Chivo wallet did not work for a few moments, we disconnected it while increasing the capacity of the image capture servers. The installation problems some people had was because of this. We prefer to correct it before reconnecting.â ????
As previously reported by Cointelegraph, El Salvador has 200 BTC. boughtwhich brings your Bitcoin inventory to 400 “coins”. The country’s parliament recently approved a $ 150 million bitcoin fund to facilitate the conversion of BTC to US dollars.
Hence, more massive Bitcoin purchases are expected, and the president has even signaled his intention to increase the country’s takeover of BTC.
Since the June vote, the Central American nation has enjoyed significant support from the Bitcoin community. Tuesday’s launch is expected to be celebrated with a solidarity purchase of $ 30 worth of BTC by various Bitcoin advocates in Latin America and around the world.
Bitcoin personalities like the CEO of MicroStrategy, Michael Saylor and the Chief Strategy Officer of the Human Rights Foundation, Alex Gladstein, endorsed the plan.
Konstantin Anissimov, CEO of the CEX.IO crypto exchange, told Cointelegraph that The introduction of Bitcoin by El Salvador confirms BTC as a currency. Bitcoin provides significant financial aid to countries with weak economies like El Salvador, according to Anissimov.
The great benefit that Bitcoin will have for these economies is that they will not have to pay any debts to anyone. This also means that these countries will offer excellent opportunities for cryptocurrency adoption and cryptocurrency startups. This will eventually increase taxation and could become a growth factor for this country. ”
The push to introduce Bitcoin in El Salvador was greeted with enthusiasm and hostility from inside and outside the country. Back in August, some retirees protested the Bitcoin law for fear that the government would pay their pensions in BTC instead of US dollars.
Apparently, up to 70% of the country’s population is opposed to Bitcoin being legal tender. Global financial institutions like the International Monetary Fund have also warned El Salvador against using BTC as legal tender.
In conversation with Bloomberg on Tuesday Mark Mobius of Mobius Capital Partners criticized El Salvador’s plan to introduce Bitcoin, stating that the country was “holding onto a burning nail”.