As of September 2021, Central American country El Salvador has officially passed a new Bitcoin law that allows BTC to be circulated as a fiat currency becoming the first nation to do so. Bitcoin is now passed as a legal tender in the country breaking through passé paradigms.
President Nayib Bukele affirmed the exciting news, tweeting that the country “just bought 200 new coins, we now hold 400 Bitcoins” as per their brand new monetary policy. This reforms El Salvador’s position in the crypto market and marks its grand entrance into the thriving world of cryptocurrencies. Bitcoin price is predicted to pass through continuous surges in the next decade making it an important contributor to global GDP.
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Support from Bukele’s Administration
Immense support pours in for the Salvadorans from their nation’s parliament with the implementation of the new “Bitcoin Law” that legalized a $150-million Bitcoin fund to expedite BTC and other digital assets to United States dollars conversions. As per market reports, the nation has acquired “400 coins” having purchased 200 Bitcoins recently.
Although the support from the global Bitcoin community prevails, more than 70% of the nation’s vote sided against the new currency reformation law passed by the El Salvador government. Met with doubts and skepticism, global banks did not shy away from expressing their concerns regarding the new monetary reforms as well. The fear of the nation’s financial regulation risks aside, many retirees are afraid that the government might roll out pensions in BTC in place of USD.
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BTC to the Rescue of the Salvadoran Economy
About a fifth of El Salvador’s dollarized GDP depends on migrant remittances amounting to $6 billion the previous year. Bukele has claimed that the implementation of BTC has the potential to save the nation’s economy by curtailing expenses of about $400 million per year. His administration has already installed 200 BTC ATMs nationwide to speed up the usage of their new fiat currency. While the IMF and the World Bank remained uncertain, regional bank CABEI lent a hand in the technicalities and security management in support of the country’s BTC law commencement.
Marked with both excitement and hostility, El Salvador’s BTC adoption is set to uplift its weak economy as the president signals amplification of the nation’s Bitcoin accretion foreseeing a boom in the country’s digital asset trade and crypto market.