- The Brazilian Reddit community and Bitcoin supporters worldwide plan to purchase $30 worth of Bitcoin tomorrow.
- This will commemorate Sep. 7 as Brazil’s Independence Day and also the day El Salvador officially effected the BTC law.
A Brazilian crypto community that has over 3 million members has agreed to purchase Bitcoin worth $30 tomorrow ahead of El Salvador’s Bitcoin law implementation. Notably, the same day that El Salvador will be implementing its BTC law, the Brazilian counterparts will be celebrating Independence Day.
More people from all over the world plan to join in on the coordinated action. Should the 3M+ Brazilian Reddit community members all buy $30 in BTC, the total results to roughly $99.5 million. Yet, more people are joining in on the move to “commemorate El Salvador’s law-making the open-source, decentralized, debasement-proof currency legal tender,” said another Twitter user.
Of note, this crypto community action was brought on two days ago by a member of Brazil’s Reddit community. Since then, it has received 85 percent upvoting. The move is meant as more of a supportive gesture than a pump, the member noted. More so, it would show people who are still on the sidelines of crypto that Bitcoin is meaningful.
El Salvador embraces Bitcoin
After garnering majority approval from El Salvador’s parliament, the BTC law was passed on June 9. The country’s president, Nayib Bukele, saw it as a way to modernize and digitize the economy. He also believes that investors and tourists owning BTC will flock into the country, thereby benefiting its economy. Thereafter, the South American country took up additional measures to encourage the use of BTC.
For instance, Bukele invited BTC miners to set up shop at a state-owned volcano-powered geothermal facility. He eliminated the capital tax gains on Bitcoin and placed effort in building a state-backed wallet known as Chivo. Another incentive is the $30 Bitcoin airdrop from the government to its 6M+ adult citizens following registration on Chivo. Plans are underway to install 1500 BTC ATMs, giving El Salvador the second-highest density of such ATMs after the US (1,825).
On top of that, the nation’s Parliament approved a $150 million Bitcoin Trust Fund. With it, El Salvadorians can convert BTC to US dollar without fear of price volatility. For many years, El Salvador has been using the US dollar due to its stability, security, and ease of transaction. Bitcoin will now join – not replace – as legal tender.
Imminent domino’s effect
Neighbouring nations such as Brazil, Paraguay, Venezuela, and Argentina among others consider following El Salvador’s footsteps. However, global financial bodies such as the IMF and the World Bank have found great fault in such actions. The World Bank has even denied El Salvador technical assistance in the event of negative environmental effects of Bitcoin mining.