San Salvador: El Salvador Tuesday became the first country in the world to adopt Bitcoin As for legal tender, a real-world experiment proponents say the commission cost for billions of dollars sent home from overseas would be low, but critics warned it could encourage money laundering.
The plan, led by the young, charismatic and popular President Nayib Bukele, aims to allow Salvadorans to save the $400 million they spend annually in commissions for remittances, mostly sent from the United States.
Last year alone remittances to El Salvador amounted to nearly $6 billion, or 23% of its GDP, one of the highest proportions in the world.
Polls Show Salvadorans Are Skeptical About Using Bitcoin and Wary of Bitcoin’s Volatility cryptocurrency Critics say there could be increased regulatory and financial risks for financial institutions. Still, some residents are optimistic.
Reina Isabel Aguilar, a store owner in L.A., said, “It’s going to be beneficial … we have family in the United States and they can send money at no cost, whereas banks charge to send money from the United States.” Huh.” Zonte Beach, approximately 49 km (30 mi) southwest of the capital, San Salvador.
El Zonte is part of the so-called Bitcoin Beach which is set to make the city one of the first bitcoin economies in the world.
For the launch, the government is already setting up ATMs for its Chivo digital wallet that will allow the cryptocurrency to be converted into dollars and withdrawn without commission, but Bukele on Monday lowered expectations for quick results. Said and demanded patience.
“Like all innovation, El Salvador’s bitcoin process has a learning curve. Every road to the future is like this and not everything will be achieved in a day or a month,” Bukele said on Twitter. Enhancing your achievements or inciting opponents.
On Monday, El Salvador bought its first 400 cryptocurrencies, temporarily raising the price of bitcoin by 1.49% to over $52,680. The cryptocurrency has been notoriously volatile. This spring, it rose to over $64,000 in April and fell to around $30,000 in May.
Some analysts fear that the move to make bitcoin legal tender alongside the US dollar could worsen El Salvador’s outlook for seeking a more than $1 billion financing agreement with the International Monetary Fund (IMF).
After Bukele’s bitcoin law was approved, rating agency Moody’s downgraded El Salvador’s credibility, while the country’s dollar-denominated bonds also came under pressure.
But Bukele, who doesn’t shy away from controversy, retweeted a video on Monday that showed a face accusing actor Jaime Foxx of a scene from Quentin Tarantino’s Django Unchained, about American slavery. The video shows Bukele whipping a slave trader with the IMF symbol on his face.
Bukele later deleted the retweet.
His own tweet read: “We must break the paradigms of the past. El Salvador has the right to move towards a first world.”
The plan, led by the young, charismatic and popular President Nayib Bukele, aims to allow Salvadorans to save the $400 million they spend annually in commissions for remittances, mostly sent from the United States.
Last year alone remittances to El Salvador amounted to nearly $6 billion, or 23% of its GDP, one of the highest proportions in the world.
Polls Show Salvadorans Are Skeptical About Using Bitcoin and Wary of Bitcoin’s Volatility cryptocurrency Critics say there could be increased regulatory and financial risks for financial institutions. Still, some residents are optimistic.
Reina Isabel Aguilar, a store owner in L.A., said, “It’s going to be beneficial … we have family in the United States and they can send money at no cost, whereas banks charge to send money from the United States.” Huh.” Zonte Beach, approximately 49 km (30 mi) southwest of the capital, San Salvador.
El Zonte is part of the so-called Bitcoin Beach which is set to make the city one of the first bitcoin economies in the world.
For the launch, the government is already setting up ATMs for its Chivo digital wallet that will allow the cryptocurrency to be converted into dollars and withdrawn without commission, but Bukele on Monday lowered expectations for quick results. Said and demanded patience.
“Like all innovation, El Salvador’s bitcoin process has a learning curve. Every road to the future is like this and not everything will be achieved in a day or a month,” Bukele said on Twitter. Enhancing your achievements or inciting opponents.
On Monday, El Salvador bought its first 400 cryptocurrencies, temporarily raising the price of bitcoin by 1.49% to over $52,680. The cryptocurrency has been notoriously volatile. This spring, it rose to over $64,000 in April and fell to around $30,000 in May.
Some analysts fear that the move to make bitcoin legal tender alongside the US dollar could worsen El Salvador’s outlook for seeking a more than $1 billion financing agreement with the International Monetary Fund (IMF).
After Bukele’s bitcoin law was approved, rating agency Moody’s downgraded El Salvador’s credibility, while the country’s dollar-denominated bonds also came under pressure.
But Bukele, who doesn’t shy away from controversy, retweeted a video on Monday that showed a face accusing actor Jaime Foxx of a scene from Quentin Tarantino’s Django Unchained, about American slavery. The video shows Bukele whipping a slave trader with the IMF symbol on his face.
Bukele later deleted the retweet.
His own tweet read: “We must break the paradigms of the past. El Salvador has the right to move towards a first world.”
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