The market cap of Bitcoin came close to hitting the $1 trillion mark earlier today amid the excitement around El Salvador’s big cryptocurrency experiment.
On Sept. 7, the tropical nation’s highly contentious Bitcoin law will officially come into effect despite fierce opposition.
The historic event is likely the main catalyst for the flagship cryptocurrency’s ongoing recovery, with the Bitcoin price recently hitting an intraday high of $52,956.
Proponents argue that El Salvador is embarking on the path to economic freedom while opponents are convinced the government of the impoverished tropical nation should have directed its resources elsewhere.
President Nayib Bukele recently took to Twitter to confirm that the country now holds 400 BTC (roughly $21 million at press time).
Last week, El Salvador’s Congress approved the creation of a $150 million Bitcoin fund, whose purpose is to ensure automatic conversion of the flagship cryptocurrency into the U.S. dollar.
As reported by U.Today, governments that do not accept Bitcoin will be subject to sanctions despite Bukele’s earlier statements about cryptocurrency acceptance not being mandatory.
A recent poll showed that 67.9 percent of people are against adopting Bitcoin as legal tender.
While the law remains unpopular with the general population, the president contends that crypto, like all innovation, has a “learning curve.”
If El Salvador defies skeptics with its Bitcoin ambitions, it’s highly likely that other Latin American countries may follow its lead.