Nayib Bukele, President of El Salvador said that they had purchased 400 Bitcoins on behalf of their government to commemorate the effective of the Bitcoin law today, Tuesday, September 7, 2021. Bitcoin price soared above $52,000
Bukele admitted that the Bitcoins were purchased on Monday, September 6, 2021. It started at 200 BTC and then it grew rapidly to 200 BTC. According to Reuters, El Salvador has 400 BTC of Bitcoin currently.
Yesterday, the local parliament approved Bitcoin law as a legal currency.
According to the President, Bitcoin will help to save money on sending El Salvadorans abroad to El Salvador, according to 40-year-old.
Bitcoin in El Salvador Not Required
Although Bitcoin use is not compulsory, El Salvadorans are more skeptical than ever about Bitcoin usage, due to the volatility of Bitcoin’s price, some critics claiming that it can increase financial and regulatory risks for financial institutions.
“From September 7, residents will be able to download the application to get payments and gifts in Bitcoin and US dollars. Bukele explained that citizens can choose to use the app or not if it isn’t for them.
Some veterans and retirees marched to the streets even a while back. They protested, refusing their pensions to be paid in Bitcoin.
It was similar to what it was previously, according to a poll of local business leaders. They don’t believe it’s possible to pay salaries for employees using Bitcoin. They rejected the obligation and demanded more clear regulations.
The Bukele government immediately responded to the demand and stated that the issue regarding Bitcoin payments would be reexamined.
El Salvador is home to two legal currencies that can be used as payment. The US dollar has been in use since 2001. Bitcoin was the most recent, effective today September 7, 2021.
This Latin American nation, which was the first to accept Bitcoin as a legal payment, is equal to the US Dollar.
Bitcoin Price Keeps on Rising
The price of Bitcoin continued to rise at the time the announcement was made, adding to the positive gains that have been made since July 20, 2020.
The psychological zone is $60K per bitcoin and stands at $52K. This gives you a great chance to break through it. The record-breaking high was $64,400 yesterday, April 14, 2021.
Bloomberg Intelligence senior analysts project that Bitcoin’s price will rise to $100K per BTC by the end of this year. Then ETH will go up to $5K. The price for ETH reached a critical point of $4K in recent times.
