El Salvador Becomes First Country to buy Bitcoin

El Salvador has become the first country in the world to officially purchase a crypto asset. This was announced by President Nayib Bukele who revealed that his government has successfully purchased 400 units of the leading digital asset.

The Central American country president first announced that his administration had purchased 200 BTCs and hinted that they could be buying more “as the deadline approaches.” Later that same day, he announced the additional purchase of another 200 units of the asset taking all of the country’s holdings to 400 BTCs.

According to available information, the purchase was made in anticipation of the official legalization of the flagship asset that is slated for today. The country had also promised to airdrop $30 worth of the asset to all of its citizens in order to boost the adoption and acceptance of BTC.

The country’s decision to recognize Bitcoin as a legal tender has won it many friends and foes. We reported that the International Monetary Fund, alongside the World Bank, have repeatedly criticized El Salvador’s decision. Just recently, some locals also highlighted how the volatile nature of the asset could negatively impact the economic growth of the country. 

However, many crypto enthusiasts have hailed the decision with President Bukele highlighting how the adoption of BTC could help increase the level of remittance to the country. The president also noted that the adoption could spur an advent of economic and social development for the state.

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