El Salvador: Bitcoin Becomes Legal Tender, Buys 400 Bitcoin

President Nayib Bukele said on Monday, El Salvador holds 400 bitcoins, one day before the country formally adopted it as legal tender alongside the U.S. dollar, so meaning that today it became the first country in the world to accept Bitcoin as legal tender, despite widespread domestic skepticism and international warnings of risks for consumers. Bitcoin temporarily climbed above 1.49% to more than $52,680 on Monday evening, Refinitiv Eikon data showed.

According to the World Bank, El Salvador is the least populated country in Central America. The country’s economy is ranked 106th out of the 195 countries as per the International Monetary Fund ranking. The bitcoin purchase is the first step toward El Salvador’s ambitious attempt to uplift its economy by using futuristic and decentralised technology as its legal tender.

Cryptocurrency enthusiasts and economic experts are now watching the country closely. The cryptocurrency becomes legal tender on Tuesday, making way for Salvadorans living abroad to save millions of dollars as Bitcoin will charge no transaction fee. However, the country’s people are still sceptical about the move as the cryptocurrency is volatile and holds high risk.

El Salvador announces Bitcoin as Legal Tender 

Earlier on 9 June, El Salvador officially announced Bitcoin as a legal tender in the country after a vote in Congress. The country adopted Bitcoin as a legal tender, passing the vote with a supermajority. President Nayib Bukele took part in a Twitter live space called, ‘Salvador Bill analysis’, where he discussed his future plans about Bitcoin.

Following the move, the price of Bitcoin jumped up and boosted its climb back from the last crash. This became the first time in history that a country has accepted Bitcoin as a legal tender. As per experts, the move would significantly help the country as a large part of its earning population works abroad, especially in the US.