The largest cryptocurrency, Bitcoin (BTC), will be officially recognized as a legal tender in El Salvador starting September 7. The government also plans to give about $30 worth of BTC to some of the residents to encourage the use of the cryptocurrency in the Central American country. 

El Salvador Set to Make Bitcoin a Legal Tender

Once officially recognized, El Salvador residents will be able to easily transact and make payments in Bitcoin. However, this won’t be mandatory. “Nobody will have to accept bitcoins if they don’t want to,” according to the president, Nayib Bukele.

El Salvador has also made history as the first country to purchase Bitcoin. The President disclosed this today, saying the country has purchased their first 200 Bitcoins.

-Advertisement-

The development marks a huge milestone for the cryptocurrency industry, as it takes Bitcoin closer to mainstream recognition as a global currency. Hence, many Bitcoiners are planning to buy at least $30 worth of BTC on September 7, in solidarity with the government and residents of El Salvador. This sounds interesting; however, some Bitcoiners are worried its effect will be the opposite intended.

Bitcoiners Speculate Effect of Mass-buying $30 BTC

According to reports, Bitcoiners on Twitter and a Reddit group (with over 3 million members) are coordinating to buy $30 worth of BTC just to commemorate the official recognition of cryptocurrency in El Salvador. However, some people are worried that the spot buys could push up the price of Bitcoin before the El Salvadorans receive them.

They argued that such a case would mean the residents will receive less BTC than they should in a normal market condition. Should the price correct afterward, El Salvadorans might end up having the wrong impression about the cryptocurrency.

In contrast, some other Bitcoiners said a $30 Bitcoin buy wouldn’t necessarily result in any notable increase in Bitcoin price. 

During the time of writing, the leading crypto was trading at $52,122, a 7.6 percent increase over the last seven days. At the current price, Bitcoin has a market capitalization of over $980.34 billion.