Official Bitcoin Digital Money Becomes a Payment Tool

Rancakmedia.com – Officially becoming a means of payment, El Salvador is buying up digital money bitcoins IDR 298 Billion, The Government of El Salvador announced that it had bought bitcoin for around 20.9 million US dollars or IDR 298 billion.

This announcement was made a day before the country officially adopted cryptocurrency as a legal tender there.

The President of El Salvador, Nayib Bukele, in his tweet, revealed that the country now has a total of 400 bitcoins.

“Our broker will buy more as the deadline approaches,” he wrote, quoted from CNBC, Wednesday (8/9/2021).

This post comes hours before the El Salvador Bitcoin Act, which was passed in June, went into effect last Tuesday.

Bukele's announcement marks a new milestone for bitcoin. El Salvador is now the first country to officially place bitcoins on its balance sheet and store them in its reserves.

Bitcoin is the legal currency that applies in El Salvador, along with the US dollar currency. Unfortunately, this policy actually received criticism from the population.

According to a survey from Central American University, nearly 70 percent of El Salvadorans disagree with the government's decision to use bitcoin as legal tender.

Many of them are also unsure about using the Bitcoin digital currency

On the other hand, the people who agreed with the El Salvador government's move said that this would show acceptance bitcoins increase and other countries could follow suit.

The government of El Salvador hopes it will increase inclusion finance in a country where about 70 percent of its citizens have no access to traditional financial services, according to bitcoin laws.

This law allows tax contributions to be paid using digital currency. Then bitcoin exchange will also not be taxed.

In addition, El Salvador also launched application digital wallet named Chivo. The public can register with their national ID for transactions with bitcoin.

They will also receive $30 worth of bitcoins or Rp. 428,000 to expedite the use of the currency.

Conclusion:

The government of El Salvador announced that it has purchased bitcoins for around $20.9 million. This announcement was made a day before the country officially adopted cryptocurrencies as legal tender. El Salvador is now the first country to officially place bitcoins on its balance sheet and hold them in its reserves.