On 7th September 2021 (Tuesday), El Salvador became the world’s foremost country to accept Bitcoin as legal tender. However, the country faced minor problems during the emergence of this endeavour as the government had to temporarily remove a digital wallet owing to a surge in demand.
Cryptocurrency and Bitcoin enthusiasts all over the world supported El Salvador on Tuesday by purchasing $30 of Bitcoin each. Nevertheless, on Tuesday, Bitcoin was at the $46,776.65 mark at 17:00 hours (down by 9.9%).
Cryptocurrencies have time and again proven themselves to be highly volatile when compared to the traditionally used currencies. This is owing to a lack of economic fundamentals that support its worth and its trades that are entirely based on consumer sentimentality.
Bitcoin ₿ for El Salvador
Nayib Bukele, President of El Salvador, stated that the Salvadoran government took advantage of the bearish curve to purchase 150 Bitcoin. El Salvador currently possesses 550 Bitcoin, stated Mr. Bukele in a tweet. Most of the Bitcoin was purchased on Monday (6th September 2021).
Enthusiasts from around the world recognized Tuesday the Bitcoin Day or B-Day. José Luis Guillén, the founder of Coincaex (a Central American forex platform to purchase and sell Bitcoin and US dollars), stated that crypto enthusiasts were eager to observe how the Bitcoin ecosystem in El Salvador will develop in the near future. The forex platform aims to become one of the first foreign bitcoin service providers to receive a license from the Central Reserve Bank of El Salvador.
The embrace of Bitcoin by El Salvador will be closely scrutinized by cryptocurrency advocates, governments across the globe, and global financial institutions.
Mr. Bukele encouraged Salvadorans to adopt Bitcoin. He ushered help from users who had already installed the government application to test if it was working effectively.
The Salvadoran President stated that the utilization of Bitcoin will help the citizens to save a whopping $400 million per year on commissions for remittances, whilst providing access to financial services for the citizens who do not possess a bank account.
El Salvador bought an extra 150 Bitcoins (worth $7 million) on Tuesday, stated Mr.Bukele in one of his tweets on Twitter. Nayib Bukele stated that the nation was purchasing the dip after the rates of the cryptocurrency dropped acutely, to form a bearish curve, on Tuesday morning. This purchase came after the nation bought 400 Bitcoin valued at approximately $20 million.
Acceptance of Bitcoin as a legal tender in El Salvador is an essential breakthrough for the future of the nation and of cryptocurrencies, stated Abdullah Mashat, a cryptocurrency analyst.
This kind of cryptocurrency nationalization will be followed by other governments from around the world. It will also provide more foreign direct investments, stated Mashat.
On Tuesday, citizens of El Salvador were attempting to download government-promoted Chivo wallet. The digital wallet promises $30 Bitcoin to every user. However, the application was not available on any of the popular app stores and the government stated that it had temporarily removed it owing to facilitate more servers to cope up with the demand.
The Chief Executive and Founder of deVere Group, Nigel Green, stated that digital currencies and cryptocurrencies are the future of monetary transactions. He believes that this moment is historical and marks an important milestone in the evolution of cryptocurrency. Green expects more nations to follow El Salvador’s lead. The endeavour is the beginning of a new world that is expected to be joined by several other countries.
Nigel Green accredited the associated risks that come with the launch of such an endeavour. However, the highlighting factor was the fact that the Salvadoran country had cemented a historical mark in the development of a new age medium, for monetary transactions.