The powerful media machine is currently rolling in El Salvador, where President Nayib Bukele spoke out and announced that the country will accept Bitcoin as legal payment method. Since at least 2019 Bitcoin has been used in El Salvador as a currency in the experiment and current President Nayibur Bukele has expressed interest in the cryptocurrency since he became the mayor of San Salvador in 2017. He also plans for the country’s state-owned geothermal utility to use the energy from its volcanoes to mine bitcoin.
One possible reason for the recent price action is a growing social media campaign calling for small amounts of bitcoin to be bought before September 7 when the cryptocurrency becomes legal in El Salvador. Popular crypto forum Reddit and prominent Twitter accounts are calling on people to buy 30 Bitcoins to coincide with the coming into force of the Bitcoin Act, which offers El Salvador citizens up to 30 Bitcoins in specialist wallets and apps.
Tomorrow, Tuesday, September 7, 2021, a new law will come into force in El Salvador that will make Bitcoin legal tender against the dollar. The law allowing Bitcoin as legal tender was passed by El Salvador’s Legislative Assembly in June 2021 [9] by a 62-84 majority. On 13 and 14 June 2021, Bitcoin will become the legal tender ninety days after publication in the Official Journal of the law, and El Salvador becomes the first country where the digital currency is legal tender. As part of the Bitcoin Act, every citizen of the country will have access to 30 Bitcoins in the country via a specialised wallet app.
The government has gone a step further to encourage the use of cryptocurrencies by giving away 30 free Bitcoins to every citizen who signs up for El Salvador’s national digital wallet, known in English as Chivo Cool. On 7 September, El Salvador will become the first country to legalize bitcoin as a tender currency. The government has gone a step further than encouraging the use of cryptocurrencies by distributing 30 free Bitcoins to all citizens who sign up for their national digital wallets, known as “Chivo Cool.”.
Under the new law, El Salvador will be the first country in the world to allow bitcoin to be used as an alternative to the national currency and local currency, the Salvadoran colon (SVC), since it replaced the dollar in 2001. Foreigners who invest three Bitcoins (BTCUSD) in El Salvador ($140,000) will receive a residence permit.
In essence, El Salvador’s new legislation will make Bitcoin in the country a legitimate currency equivalent to the US dollar and all citizens who join the government-sponsored cryptocurrency currency CHIVO will receive 30 Bitcoins. The country’s original Bitcoin law, which will be passed in June 2021, states that economic operators can accept Bitcoin payments offered to them to purchase goods and services.
America’s Johns Hopkins University, for example, has published a study suggesting that savings in Bitcoin, which should actually go to expatriates who send money back to the country, are not. Ratings agency Moodys recently downgraded El Salvador’s rating as part of the Bitcoin law.
Despite widespread skepticism in El Salvador about the new law, initiatives to facilitate the use of BTC as a means of payment, such as installing 200 ATMs to convert into dollars, are slowly gaining traction. El Salvador’s heavily indebted government has installed 200 Bitcoin ATMs that allow people to convert the cryptocurrency into dollars.
About 30% of the population of Central American countries do not have a bank account and think that the US dollar should be used for everything, but El Salvador’s increasingly indebted government has been around a long time and its President wants to switch to Bitcoin. About 30% in Central America have no bank accounts and believe that the US dollar should always be used, but in El Salvador, a country that is heavily in debt, the government and the president want to move towards Bitcoin.
Tomorrow will be history when El Salvador becomes the first country in the world to introduce bitcoin as legal tender. By opting for Bitcoin, El Salvadorans will have ultimate financial sovereignty, be able to use their money for whatever reason or purpose they see fit, and be assured that their purchasing power will not be weakened. In pursuit of monetary security and financial sovereignty, Bitcoin will restore economic freedom and peace, and El Salvador is among the first countries to enjoy such benefits.
Other nations will follow suit, Nigel Green, CEO and founder of Devere Group, predicted on Tuesday with the introduction of Bitcoin as the national currency in El Salvador instead of the US dollar. There are many problems with the introduction of Bitcoin, but setting aside the negative press, the aim is for a country to be able to choose its own monetary fate, free from the tyrannical guys running the current debt-based Fiat Ponzi scheme we call money.
El Salvador is betting that it will boost its economy by opening its doors to bitcoin first. Prominent figures have joined the growing social media campaign requesting for small amounts of bitcoin to be bought on September 7, when the cryptocurrency becomes legal in the country. Microstrategiys CEO Michael Saylor wants cyber horns to show solidarity with the people of El Salvador and the country’s President Nayib Bukele. If El Salvador’s adoption of Bitcoin proves a success, it would be a massive step toward mass adoption of Bitcoins, and other countries would follow suit.
