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El Salvador Buys 21 Bitcoin To Mark A Special Occasion

El Salvador is buying more Bitcoin – this time, for the meme.

Nayib Bukele, President of El Salvador, said that the country is buying 21 BTC – to mark a special occasion. In particular, Tuesday marked the 21st day of the 21st year of the 21st century.

The Bitcoin transaction in question happened on 21/21/2021 at 9 PM and amounted to 21 Bitcoin. The eccentric president also pointed out that El Salvador’s size is 21,000 km2.

Coincidence? I don’t think so!

The newest purchase is relatively small in comparison to El Salvador’s Bitcoin holdings. As of September, the country had 700 BTC in its reserves, according to Bukele. Later, the government used Bitcoin dips to purchase a further 420 BTC in October.

The newest symbolic purchase sends a message about El Salvador’s focus on Bitcoin. In September, the country became the first to adopt Bitcoin as legal tender. The decision allows its citizens to use Bitcoin to buy all goods and services.

On the other hand, the additional legal tender in the country is the U.S. dollar. El Salvador adopted the dollar as its only official currency in 2001 – until they introduced Bitcoin.

El Salvador also developed its official digital wallet – Chivo. To encourage use, the government gave out $30 to all addresses. Moreover, the government places some 200 BTC ATMs across the country.

Criticism

However, the measure was not popular at first. The Bitcoin law even led to multiple protests. In fact, on September 15, protestors burned down crypto kiosks in San Salvador, the nation’s capital. The widespread opposition also made the BTC ATMs target arson. So much so that the government deployed soldiers to protect them.

International opposition was vocal as well. The World Bank and the International Monetary Fund warned El Salvador against adopting Bitcoin as legal tender. The IMF, in particular, warned about the supposed use of crypto in money laundering.

Financial integrity could also suffer. Without robust anti-money laundering and combating the financing of terrorism measures, cryptoassets can be used to launder ill-gotten money, fund terrorism, and evade taxes. This could pose risks to a country’s financial system, fiscal balance, and relationships with foreign countries and correspondent banks.

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Still, despite the criticism, Bukele remains a staunch supporter of crypto. He has big plans for the country and its crypto future. These plans include mining Bitcoin using the power of the country’s Vulcanoes – something already underway. The country’s eccentric president remains undeterred by criticism.

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