Bitcoin officially became the legal tender of El Salvador

Earlier, the President of the Central American island nation of El Salvador, Nayib Bukele, announced that Bitcoin would become the country’s legal tender, and then the relevant bill was voted and passed during the dispute.

Now, Bitcoin has officially become the legal tender of El Salvador from today. Its status is the same as that of the U.S. dollar and can be used for saving or payment locally.

To celebrate the entry into force of the new bill, Naybbuquer announced that El Salvador had purchased 400 bitcoins for storage in batches at a cost of approximately $20 million.

In the eyes of investors in the currency circle, El Salvador’s adoption of Bitcoin as legal tender is undoubtedly an advanced measure, but there are not many people in El Salvador who support the bill.

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“Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo” by antanacoins is licensed under CC BY-SA 2.0

There are many reasons for not supporting it, including the extremely high volatility of Bitcoin and the distrust of the people in cryptocurrencies, and of course some untimely measures.

For example, the bill stipulates that after Bitcoin is called legal tender, individuals and businesses shall not refuse to accept Bitcoin. Obviously, this is a disaster for people who have never understood Bitcoin.

Of course, it is also predictable that it will not be accepted by the public or even rejected in the initial stage. If El Salvador wants to promote Bitcoin, it may have to work hard on publicity.

In addition, as an incentive measure to encourage people to use Bitcoin, the Salvadoran government distributed $30 in Bitcoin to all citizens to encourage users to use their wallets.

Via: Reuters