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El Salvador officially approves Bitcoin as legal tender

by reputation
June 10, 2021
in Communication, Extras, Finance, People, Politics
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El Salvador officially approves Bitcoin as legal tender
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A majority of 62 out of 84 lawmakers approved the bill, which President Bukele proposed last week.

The cryptocurrency market grew to more than $2.5tn in mid-May 2020, according to the CoinMarketCap page [File:Reuters]
The cryptocurrency market grew to more than $2.5tn in mid-May 2020, according to the CoinMarketCap page
9 Jun 2021

El Salvador has approved a proposal from President Nayib Bukele for a law to classify Bitcoin as legal tender, making the Central American nation the first in the world to do so.

Bukele has touted the use of Bitcoin for its potential to help Salvadorans living abroad send remittances back home while saying the US dollar will also continue as legal tender.

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“It will bring financial inclusion, investment, tourism, innovation and economic development for our country,” Bukele said in a tweet shortly before the vote.

He added that the use of Bitcoin, whose use will be optional, would not bring risks to users. Its use as legal tender will go into law in 90 days.

“The government will guarantee the convertibility to the exact value in dollars at the moment of each transaction,” Bukele said.

A majority of lawmakers voted in favour of the initiative late on Tuesday to create a law that will formally embrace the cryptocurrency, despite concern about the potential effect on El Salvador’s programme with the International Monetary Fund.

“The #BitcoinLaw has just been approved by a qualified majority” in the legislative assembly, President Nayib Bukele tweeted after the vote in the assembly.

 

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