El Salvador will buy the first 200 BTC, confirms President Bukele

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El Salvador’s President Nayib Bukele confirmed on Monday that his government had bought their first 200 Bitcoin (BTC) before a new law was introduced on September 7 to make cryptocurrency legal tender.

“Our brokers will buy a lot more as the deadline approaches,” said Bukele, referring to the September 7th schedule for full implementation of the new BTC legislation.

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The purchase is part of a new $ 150 million Bitcoin fund approved by the El Salvador Congress last week. The fund will be used to facilitate the conversion of BTC to US dollars in advance of the implementation of the new law. At current prices, the BTC purchase was worth just over $ 10.36 million.

In June of this year, El Salvador became the first country in the world to recognize Bitcoin as legal tender. Although the decision was praised by the Bitcoin community, critics from the World Bank and the International Monetary Fund warned that the new strategy is not a good idea. More recently, internal opposition, particularly among retirees, has been protesting hundreds across the country against the new Bitcoin law.

Youngest: The President of El Salvador announces that the infrastructure will be built before Bitcoin is introduced in the country

Perhaps surprisingly, Bank of America recently highlighted at least four potential benefits for El Salvador from accepting Bitcoin. In a report released in July, the bank said the country’s rollout of BTC could streamline remittances, fuel financial digitization, give consumers greater choice, and open the country to overseas investors.

The new Bitcoin law gives Salvadorans the option to hold Bitcoin as part of a long-term investment strategy or to withdraw cash from one of the 200 ATMs installed across the country. The country is also building infrastructure to support a government-issued Bitcoin wallet called Chivo. The Chivo wallet will have its own ATM that will allow citizens to withdraw cash 24/7 without paying commissions.