It is unknown whether the purchase happened through the central bank or the presidency. At the current price of BTC, the government would have set an investment of more than $ 10 million.
The president of El Salvador, Nayib Bukele, revealed during the afternoon of September 6 that his nation purchased 200 bitcoins (BTC). The president assured it is the first of many acquisitions the country will make in the next few hours or days, to invest in the first cryptocurrency.
The president announced through his Twitter account that El Salvador has just bought its first 200 coins. Their brokers will acquire many more as the #BitcoinDay #BTC deadline approaches.
The mechanism that the country used to buy its bitcoins remains unknown. It is also unknown if the nation approached exchanges, over-the-counter (OTC), or other exchange platforms.
There is no further report about whether the investment happened through the Central Reserve Bank of El Salvador or was an investment made directly from the presidency. At the current price of BTC, the government would have spent more than 10 million dollars for the 200 cryptocurrencies.
Bitcoin is Now Legal Tender
Bukele’s announcement has come a day before El Salvador consolidates the prime execution of the so-called Bitcoin Law. As of this Tuesday, September 7, the Salvadoran State will become the first nation in the world to recognize BTC as legal tender, along with the United States of America dollar.
Its acceptance in commercial establishments will now be mandatory, applying some relevant exceptions, and the dollar will remain the first unit in consideration. Users and businesses will have the option of keeping their BTC or converting those currencies into dollars.
According to Buy Bitcoin Worldwide records, El Salvador joins Bulgaria and Ukraine as the first bitcoin holding countries. However, the latter two cases are going through a series of seizures from “criminal organizations” in Bulgaria, and positions in BTC of its public officials, regarding Ukraine.
El Salvador had generated a media stir three months ago when the country briefly announced that it would set a strong adoption of bitcoin as legal tender. The Legislative Assembly expressly approved the Bitcoin Law to get executed, which will come into effect this week.
During the Bitcoin 2021 conference, a video of the Salvadoran president giving the news received a projection. He said he would send a bill to Congress to make bitcoin a legal tender in El Salvador.
The president assured it would help generate jobs and create financial inclusion for thousands of unbanked people in the South American country.
The video received its projection during a speech led by the founder of the payment application Strike, Jack Mallers, at the conference. Mallers revealed part of the text included in the bill, reflecting the concern that exists in the nation about the money issuance measures promoted by central banks.
By: Jenson Nuñez
