El Salvador made history by becoming the first sovereign country to recognize bitcoin as legal currency. It had made a huge stride forward in bitcoin’s direction, and everyone was elated at the official adoption on September 7. It was only a young digital asset that had gone from being an internet currency of relative unknown to becoming the legal tender of the country.
El Salvador has been making strides in bitcoin since then. The country had gradually increased its stake in BTC after its first purchase on what has come to be known as “Bitcoin Day” in the country. The adoption of Chivo’s government-issued Bitcoin wallet has grown quickly as more people in the country took advantage the $30 bonus.
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The adoption rate was apparently moving faster than anticipated. Two months ago, President Nayib Bukele made an astonishing revelation about the amount of bitcoin-using citizens.
BTC wallets are used more than banks
After the adoption of Chivo, President Nayib Bukele gave updates on various levels about how many users were using it. Within a matter of ten days, the number reached over one million users. The number of users embracing cryptocurrency grew over the next weeks.
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Bitcoin was created to ensure that El Salvadorans, who are largely unbanked and unable to access services they otherwise would not have, could use it. El Salvadorians seem to have taken advantage of all this.
Bukele announced via Twitter that more people are using Bitcoin wallets as of November 15, 2017 than were those with bank accounts.
Only one place on Earth has more people. #BitcoinMore people have wallets than banks accounts.
The truth is, it’s not possible. https://t.co/bZb4M6XZZZ
— Nayib Bukele 🇸🇻 (@nayibbukele) November 15, 2021
This tweet was in response to one from Bitcoin.comVendors accepting BTC to buy street food The country’s citizens still prefer bitcoin over US dollars, but it seems that the cryptocurrency is gaining popularity even in the rural regions.
Bet on Bitcoin
El Salvador’s support for bitcoin had not ended just at making it legal tender. In order to demonstrate its support for long-term growth, El Salvador had already purchased the digital asset. 200 BTC were the first purchase made. This was on the same day that the law became effective. It was promised that more BTC would be purchased in the following two months.
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It purchased 420 BTC worth $25 Million for the most recent purchase. Bitcoin had fallen during that period, and the country used the opportunity to expand its bitcoin stash to bring the total to 1,120 BTC.
El Salvador is being watched by the rest of the world to determine how cryptocurrency will be used as a legal currency in the future. At the moment, El Salvador seems to be doing fine. They are adapting well to having digital currency as their legal tender.
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