El Salvador buys its first 200 BTC a day before its bitcoin law becomes effective

CoinDesk Analysis Team CoinDesk

And it “will be buying a lot more.”

El Salvador President Nayib Bukele announced on Twitter that his government has bought 200 BTC on Monday, a day before the country’s Bitcoin Law, which will make the cryptocurrency legal tender within the Central American nation, goes into effect.

“El Salvador has just bought it’s first 200 coins,” he wrote. “Our brokers will be buying a lot more as the deadline approaches. #BitcoinDay #BTC”

El Salvador has just bought it’s first 200 coins.

Our brokers will be buying a lot more as the deadline approaches.#BitcoinDay #BTC
— Nayib Bukele (@nayibbukele) September 6, 2021

At press time, bitcoin was changing hands at $51,883.07, up 1.84% in the past 24 hours, according to CoinDesk 20.

Prior to Bukele’s tweet, there had been a growing number of users on social media platforms including Twitter and Reddit calling for people to buy small amounts of Bitcoin in support of El Salvador’s plan to make bitcoin legal tender, Bloomberg reported, as many investors are betting that the news could give the oldest cryptocurrency a price boost.

In June, Bukele announced that the Bitcoin Law would go into effect on Sept. 7. His government will use the Chivo e-wallet, preloaded with US$30 of bitcoin for everyone who downloads it.

El Salvador’s government has also been working on building infrastructure to support the new Bitcoin Law, including creating a $150 million bitcoin trust to facilitate exchange between bitcoin and U.S. dollars in the country.

The law was passed by a supermajority in El Salvador’s legislature, with 62 members voting in favor of the bill, 19 opposed and three abstained.

However, in contrast to the original law, Bukele on Aug. 23 confirmed that the use of bitcoin as legal tender will not be mandatory.

“If someone wants to continue to carry cash, not receive a sign-on bonus, not win over customers who have bitcoin, not grow their business and pay commission on remittances, they can continue to do so,” Bukele tweeted at the time.

Author

CoinDesk Analysis Team

CoinDesk

CoinDesk is the media platform for the next generation of investors exploring how cryptocurrencies and digital assets are contributing to the evolution of the global financial system.

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