It is estimated that the value of Bitcoin is close to $1 trillion after El Salvador purchased 400 BTC. With this purchase, Bitcoin is on the verge of reclaiming inclusion in the “trillion-dollar group”. The controversial Bitcoin regulation will go into force on Sept. 7, amid intense resistance. Bitcoin’s latest intraday high of $52,956 is probably due to the historic occurrence, which is expected to be a big boost for the currency market rebound.
Advocates believe that El Salvador is on the road to financial liberty, while detractors believe that the leaders of the destitute tropical country should have diverted its finances to more productive uses. Bukele confirmed on Twitter that the nation currently possesses 400 Bitcoins (approximately $21 million at the time of publication).
“A degree of difficulty is inherent in any invention, and the #Bitcoin approach is no exception in El Salvador. Like all roads to the future, nothing will be accomplished in a day or even a month. The old preconceptions must be broken, though. El Salvador has the capacity to progress into the first nations.”- Nayib Bukele (@nayibbukele) September 6, 2021
The week before, El Salvador’s Congress passed the formation of a $150 million Bitcoin Trust, whose aim is to assure automated transfer of the flagship digital currency to the U.S. dollar, according to Reuters.
Penalties, Sanctions, and Opposition
Businesses in El Salvador who refuse to recognize Bitcoin as a form of payment will risk penalties. An El Salvadorian legal counsel to President Nayib Bukele told the press on Monday that firms who refuse to accept Bitcoin transactions and utilize the official Chivo wallet will be subject to penalties under the region’s Consumer Protection Law.
“#Live | In the interview @Frentea_Frente Javier Argueta, legal adviser to the Presidency, says that entrepreneurs who do not use the Chivo wallet and refuse to make transactions with Bitcoin are subject to sanctions under the Consumer Law.” pic.twitter.com/6e8VRPDixL- Diario El Mundo (@ElMundoSV) September 6, 2021
Argueta’s latest remark contradicts the Aug. 23 Twitter thread made by Bukele that makes it apparent that the usage of Bitcoin would be voluntary: For those who prefer handling cash, not receiving a sign-on bonus, not winning over clients with Bitcoin, not growing their firm, and not paying commissions on transactions, that’s OK.”
Members of the opposition haven’t overlooked the inconsistency, either. FMLN spokeswoman Anabel Belloso charged government officials with dishonesty. After being proposed by the president on June 8, Bukele’s Bitcoin Law was approved by the Legislative Assembly on June 9. Article 7 of the law has been a major cause of debate, both within and outside of El Salvador, as it requires shops to accept Bitcoin as a form of payment.
As a result of the Bitcoin trial, Bukele’s opponents held rallies. An apparent last-ditch attempt by a tiny number of the president’s critics has used sorcery to hex the nation’s president and his household.
“# PoliticalClass | A group of opponents of the Government expressed curses for the President @nayibbukele, family and collaborators, after the failure of the protest for the resolution of the Chamber and the forthcoming entry into force of the Bitcoin Law”.— Última Hora (@ultimahsv) September 6, 2021