Bitcoin's price SOARS as crypto to become legal tender in El Salvador – mass buying calls

BITCOIN’s price is soaring amid a decision by El Salvador to make the cryptocurrency legal tender, buying hundreds of coins in the process, and has sparked calls from some groups to rally behind the move to purchase more BTC.

Cryptocurrencies like Bitcoin are ‘apolitical’ says financial expert

Make the most of your money by signing up to our newsletter for FREE now

Invalid email

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

El Salvador’s Bitcoin law came into force today following President Nayib Bukele’s announcement in June that stunned financial institutions around the world. El Salvador’s President announced that his administration had purchased 400 , worth around $20million. On Monday President Bukele said: “We now hold 400 Bitcoin”.

El Salvador’s central banks need the Bitcoin purchases to operate the government’s ‘Chivo’ digital wallet that will contain $30 of BTC for each citizen.

Bitcoin temporarily climbed above 1.49 percent to more than $52,680 on Monday evening ahead of the Salvadoran legal tender law implementation.

Currently, the Bitcoin price sits at $51,298, representing an approximate 8 percent rise in the last seven days.

Two recent polls conducted in July and August show Salvadorans are sceptical about using Bitcoin.

READ MORE: Can you inherit state pension? Inheritance of payments explained

Bitcoin price has soared on news of the legal tender status in El Salvador

Bitcoin price has soared on news of the legal tender status in El Salvador (Image: GETTY)

The Bitcoin price has risen after the news from El Salvador

The Bitcoin price has risen after the news from El Salvador (Image: GETTY)

They have concerns over the volatility of the cryptocurrency and fear it could increase regulatory and financial risks for financial institutions operating within the nation.

However, Bitcoin pioneer Max Keiser forecasts an upward trajectory for the cryptocurrency and speaking to Express.co.uk said: “Bitcoin can only go up. It’s a mathematical certainty. It has proven itself as the superior form of money and since its supply is finite at 21 million every defector fiat dollar, pound, yen, euro and even Gold, that has proven itself inferior to Bitcoin in every way, pushes the price higher.”

President Bukele has claimed the move to make Bitcoin legal tender in the country would increase financial inclusion in a society where many remain unbanked.

He added his plan would see more investment and economic development from crypto-developers setting up in the nation.

However, there have been protests in El Salvador against the new law.

DON’T MISS

Crypto whales – the powerful crypto forces able to ‘manipulate’ tokens – EXPLAINER

Investor Paulson says cryptocurrencies will become worthless – VIDEO

Top crypto investments of the last year – ANALYSIS

Cryptocurrency ATMs by country

Cryptocurrency ATMs by country (Image: Exrpress)

Many citizens say they do not know how to use the digital coin and are suspicious that it could be used for money laundering.

The news comes as a Reddit group, comprising more than 3.3million members, has seen calls for a coordinated purchase of Bitcoin.

There are demands within the Reddit group for members to make their purchase today on the same day as El Salvador’s Bitcoin law comes into effect.

One Reddit group is entitled, “So… we all buying $30 worth of Bitcoin on Tuesday?”

The moderator of the group celebrated the move, adding: “El Salvador will have the crypto launch at 3pm. This is an important time in Bitcoin.

“Let’s show El Salvador, for those who are on the fence about it still, that Bitcoin has value for them, and for everyone, Bitcoin is meaningful.”

Related post