Bitcoin is on the verge of becoming a global legal tender as El Salvador breaks through
There has been always a long-winded discussion on Bitcoin. But today by reading about Bitcoin will impart you more than appeasing moments. President Rare Buckley announced that El Salvador had bought its first 400 bitcoins in two installments of 200. And promised more to come. El Salvador on Tuesday became the first country in the world to accept bitcoin as a legal tender. Despite widespread domestic suspicions and international warnings of consumer threats. The government of Vice President Buckley claims that the move will give Salvador residents access to banking services for the first time. And save $ 400 million annually on remittances from abroad.
Each eye will range EL Salvador for buying 400 Bitcoins
Tomorrow, for the first time in history. All eyes of the world will be on El Salvador. Announcing the ball rolling on Monday evening. Bitcoin did just that, ” Bukele said on Twitter on Monday. He announced that El Salvador had bought his first 400 bitcoins in two installments of 200. And promised more to come. According to the cryptocurrency exchange app Gemini, 400 bitcoins were trading for about $21million.
A recent poll shows that a majority of El Salvador’s 6.5 million people reject the idea and will continue to use the US dollar. The country’s legal tender for the past 20 years. This bitcoin is a non-existent currency. A currency that will benefit the rich, not the poor. Said suspect Jose Santos Milara, who was among hundreds of protesters in the capital, San Salvador, last week. Participated. “How can a poor person (in a bitcoin) invest if he has barely enough to eat?”
In June El Salvador’s parliament passed a law allowing corrupt money to be accepted as a tender for the US dollar. And as well as for all goods and services of the small Central American nation. The bill, a move by Buckley, was passed within 24 hours of being introduced in Congress . Where the president’s allies have had a majority since March. However, right after that Experts and regulators have raised concerns about the notorious volatility of the cryptocurrency. And the lack of protection for its users.
The government is installing more than 200 bitcoin teller machines. Some under the protection of soldiers, to prevent possible arson of opponents. And Buckley has promised $ 30 for every citizen who adopts the currency. These are decisions that the administration and legislators have made without consultation. Said Laura Andard, director of the Central American University’s Public Open Institute, which found in a survey that 70 percent of Salvadorians opposed the move.
As a matter of fact, we see that people do not see the positive effects of significantly changing their living conditions. He told AFP. About two-thirds of Salvadorians questioned for the poll said they had no interest in downloading the “Chivo” Electronic wallet. Which would allow consumers to buy and spend bitcoins. The currency fell below $ 30,000 in June, more than half of the 64,000 it had just two months earlier.
For its part, the Salvadoran Foundation for Economic and Social Development (FUSADE) said. It was “unconstitutional” to make it mandatory for merchants to accept bitcoins as payment.
The estimated amount
Buckley who is popular in many quarters. But is under fire for tightening his grip on power. He has accused opponents of trying to “Sow Fear” among Salvadorians, some of whom have access to regular banking services. Remittances make up one-fifth of GDP in the national economy. Mainly in dollars through agencies such as Western Union, with an estimated 1.5 million ex-pats.
El Salvador received more than $ 9.5 billion in 2020 from expatriates. Especially in the United States, according to World Bank figures.
And the country is relying on that money to grow a struggling economy that shrunk 7.9 percent in 2020, largely due to the coronavirus epidemic. Economists and international organizations such as the World Bank. The International Monetary Fund, and the Inter-American Development Bank have expressed concerns about the adoption of El Salvador’s bitcoin. The United States has urged El Salvador to ensure “regulated, “transparent” and “responsible” use of the bitcoin. And to protect itself from “deadly actors” such as hackers seeking ransom money.
Bitcoin is underlying assumptions
Bitcoin has been criticized by regulators for its potential use – especially in money laundering from criminal activities and financing of terrorism. But not everyone is against it, and at the end of June. According to Bukele, about 50,000 Salvadorians were using bitcoins. Many of them are in the coastal town of El Zonte. Where hundreds of businesses and individuals use the currency for everything from paying utility bills to buy a Can of Soda. Started as a project by an anonymous bitcoin donor. The town until recently boasted El Salvador’s only bitcoin teller machine.