The world's first law to use Bitcoin as legal tender is enforced in El Salvador



The law to make Bitcoin, a virtual currency, a legal tender came into effect on Tuesday, September 7, 2021 in El Salvador. 'Making virtual currency into legal tender' is the first case in the world.

In world first, bitcoin becomes legal tender in El Salvador

https://techxplore.com/news/2021-09-world-bitcoin-legal-tender-el.html



Salvador street protest breaks out against bitcoin adoption | Reuters

https://www.reuters.com/world/americas/salvador-street-protest-breaks-out-against-bitcoin-adoption-2021-09-07/

El Salvador's Chivo bitcoin wallet struggles to reach liftoff on launch day
https://www.theblockcrypto.com/post/116870/el-salvadors-chivo-bitcoin-wallet-struggles-to-reach-liftoff-on-launch-day

In June 2021, a bill to 'adopt Bitcoin as legal tender' passed the parliament in El Salvador, a small country in Central America.

'Bill to make Bitcoin legal tender' passed in El Salvador, mining plan using geothermal heat --GIGAZINE



The law came into effect on Tuesday, September 7, 2021, and Bitcoin officially became the legal tender. This is the first time in the world that virtual currency has become the legal tender of the country.

In El Salvador, international remittances from people working overseas account for 20% of GDP, and there were problems such as handling fees of 10% and time to deposit, but with virtual currency this The problem is gone and it is expected to save $ 400 million a year in fees. In addition, 70% of the people do not have a bank account or credit card, but virtual currency has the advantage of being accessible without a bank account.

On the other hand, cryptocurrencies have the big disadvantage of volatile prices, and experts have raised concerns. Also, in the opinion poll, many people answered that they would continue to use cash instead of Bitcoin, and there was a view that it would take time to be accepted. As you can see from this view, there are street demonstrations against the introduction of Bitcoin on the day of enforcement.

The El Salvador government has set up 200 'Bitcoin ATMs' nationwide in line with the enforcement of the law. In addition, we have prepared a cyber wallet application 'Chivo' for purchasing and using Bitcoin. However, 'Chivo' was scheduled to be released at midnight on September 7, but it was not released on schedule, and President Nayib Bukele tweeted anger to Apple, Google, and Huawei.



In addition, when setting up the wallet, you can receive bitcoins worth $ 30 (about 3300 yen), but when entering data for setup, there is also a problem that setup does not proceed due to insufficient server capacity. .. This issue has been resolved by switching to a larger server.

President Bukele announced that he has purchased a new 150 BTC (about 780 million yen) in line with the legal tenderization of Bitcoin.



With this, the bitcoin held by El Salvador is said to be 550 BTC (about 2.85 billion yen).



In addition, although the Bitcoin market plunged on September 7, if you check the movement on a weekly basis on the bitFlyer chart , you can see that it has returned to the level of September 2.



In addition, it can be confirmed that the price has increased on a monthly basis compared to the beginning of August.



in Note, Posted by logc_nt