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The world’s first adoption of Bitcoin in El Salvador withstands bumpy first days

San Salvador: The adoption of El Salvador’s historic Bitcoin as fiat currency on Tuesday was plagued by dental problems as an angry protest https://www.reuters.com/world/americas/salvador-street -protest-breaks-out-against- Adoption of Bitcoin by distrustful citizens-2021-09-07, technical glitches, and a decline in cryptocurrencies have clouded the evolution.

Bold experiments got off to a bumpy start after midnight when they complained that government-sponsored Bitcoin apps weren’t available on various internet platforms, including Apple and Huawei.

Bukele used his Twitter account to encourage the online store to stock an app, or a digital wallet known as Chivo, which Huawei later made available. However, if it turned out that the app couldn’t support user registration, the government unplugged the app to connect to more servers and increase capacity.

Still, as the app began to appear on more platforms, Bukele was retweeting videos posted on social media by the afternoon and paying with Bitcoin at El Salvador retailers such as McDonald’s and Starbucks. I did.

“El Salvador is making great strides today,” said Carlos Garcia, who went to the San Salvador shopping mall booth and gave advice on how the new currency works.

Promising $ 30 Bitcoin to each user, Bukele promoted its adoption https://www.reuters.com/world/americas/migrant-families-wary-el-salvador-becomes-first-adopt- bitcoin-2021-09-06 states that it will help El Salvadorans save $ 400 million annually in remittance fees while at the same time providing access to financial services to those who do not have a bank account.

“We have to break the paradigm of the past. El Salvador has the right to move towards the First World,” Bukele tweeted.

Bukele, 40, is one of the most popular presidents of the Americas, but has been accused of eroding democracy https://www.reuters.com/world/americas/central-american- aides-judges-former-presidents-us-corruption list-2021-07-01. According to a survey, El Salvadorans are skeptical of Bitcoin’s use and fear its volatility https://www.reuters.com/world/americas/migrant-families-wary-el-salvador-becomes -first-adopt-bitcoin-2021-09-06 And I don’t know how it works.

More than 1,000 people in San Salvador protested the adoption of Bitcoin on Tuesday, burning tires and launching fireworks in front of the Supreme Court.

The government bought an additional 150 Bitcoins on Tuesday as currency prices fluctuated. That’s about $ 7 million.

Still, the poor may have difficulty accessing the technology needed to make Bitcoin work in El Salvador, where nearly half of the population does not have access to the Internet and more people have poor connections. ..

“I will continue to suffer with or without Bitcoin,” said sweets seller Jose Elera, who said he had a hard time accessing his cell phone.

Some say that the adoption of Bitcoin can foster illegal transactions and financial instability. It’s already confusing the outlook for over $ 1 billion https://www.reuters.com/business/finance/imf-sees-legal-economic-issues-with-el-salvador-bitcoin-move-2021-06 -10 In the financing El Salvador is seeking from the International Monetary Fund (IMF).

U.S. tension

Prior to its launch, El Salvador bought about $ 20 million worth of 400 Bitcoins, raising the price to more than $ 52,000 for the first time since May, according to Bukele. A few hours later, Bitcoin weakened and finally fell 8.84% to trade at $ 47,327.32.

Another cryptocurrency, Ethereum, fell 10.52% to $ 3,537.62, while crypto exchange Coinbase Global fell 3.96% after reporting some transaction delays on the platform.

This change means that companies will need to accept Bitcoin payments along with the US dollar, which has been the official and legal tender of El Salvador since 2001.

It is unclear if companies will be punished if they do not accept Bitcoin.

For launch, the government has set up an ATM that can convert Bitcoin into dollars and withdraw it from the digital wallet Chivo without any fees.

Bukele has blamed Apple Inc, Alphabet’s Inc’s Google, and Huawei’s app download platform for the first Chivo delay.

“Release him! @ Apple @ Google and @ Huawei,” Bukele wrote in a tweet, with a red-faced “angry” emoji.

The wallet was later made available from Huawei and Apple.

“Like all innovations, the El Salvador Bitcoin process has a learning curve. Not everything can be achieved in a day or a month,” Bukele said in a tweet.

In his tenure for just two years, Bukele has dominated almost all the levers of power. However, although he promised to clean the grafts, the Biden administration recently blacklisted some of his close allies.

Last week, the Supreme Court appointed by Bukele’s lawmaker ruled that he could serve the second term https://www.reuters.com/world/americas/el-salvador-top-court- rules-presidents-can-serve-two-consecutive -terms-2021-09-04, a break from constitutional rules prohibiting consecutive terms.

Analysts fear that the adoption of Bitcoin, whose transaction records are distributed across the Internet beyond national jurisdictions, could encourage money laundering.

After the Bitcoin law was approved, rating agency Moody’s downgraded El Salvador’s creditworthiness, but it also puts pressure on dollar-denominated bonds.

The World Bank reiterated on Tuesday that it could not help El Salvador adopt Bitcoin “given the shortcomings of the environment and transparency,” a bank spokesman told Reuters.

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The world’s first adoption of Bitcoin in El Salvador withstands bumpy first days

Source link The world’s first adoption of Bitcoin in El Salvador withstands bumpy first days

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