El Salvador bought its first 200 Bitcoin, ordered sanctions businesses that refuse to accept BTC
Javier Argueta, the legal advisor to El Salvador President Nayib Bukele, said that businesses that refuse to make transactions with Bitcoin and use the national Chivo wallet would face sanctions under the country’s Consumer Protection Law. Meanwhile, the government has bought $10 million of Bitcoin, as revealed on the Twitter profile of Bukele.
El Salvador announced today that it had purchased 200 BTC
Argueta’s most recent statement runs counter to an August 23 Twitter thread posted by Bukele, in which he makes it clear that the use of Bitcoin would be voluntary:
“If someone wants to continue to carry cash, not receive a sign-on bonus, not win over customers who have bitcoin, not grow their business and pay commission on remittances, they can continue to do so,” he stated.
Members of the opposition have not ignored the contradiction. Anabel Belloso, a representative of the FMLN party, accused the government of lying.
Also, Bukele stated that the El Salvador government had purchased 200 BTC. The purchase was made in preparation for the country’s plans to make the cryptocurrency legal tender on September 7. At the current $52,000 for 1 BTC, the purchase is worth approximately $10.4 million.
El Salvador has just bought it’s first 200 coins.
Our brokers will be buying a lot more as the deadline approaches.#BitcoinDay #BTC??
— Nayib Bukele ?? (@nayibbukele) September 6, 2021
He noted that this is just the first purchase that El Salvador will make. Bukele explained that the country’s brokers would be buying a lot more as the deadline approaches in his Twitter message. Presumably, the funds will go toward the country’s plan of airdropping $30 of cryptocurrency to its citizens.
Bitcoin price increased slightly following Bukeke’s announcement, rising from $51,667 to $52,700 within hours. That change represents an increase of approximately 2%. Bukele’s Bitcoin Law was passed by the Legislative Assembly on June 8, shortly after being introduced by the president.
The bill has become a major source of controversy inside and outside of El Salvador, with critics mostly directing their anger at the controversial Article 7, which makes crypto acceptance mandatory for merchants. Still, El Salvador will not be replacing the dollar, will not require anyone to accept BTC, and will offer instant convertibility between the two currencies.
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