Bitcoin is now recognized as legal tender in El Salvador, alongside the US dollar.
El Salvador has officially become the first nation to recognize bitcoin as legal tender after its congress passed President Nayib Bukele’s proposal to adopt the cryptocurrency. This groundbreaking decision aims to foster financial inclusion, attract investment, and promote economic growth.
Despite concerns over potential complications in securing a financing deal with the International Monetary Fund (IMF), El Salvador’s congress approved the measure late on Tuesday with 62 votes out of 84. The move will see bitcoin and the US dollar used as legal tender, with the exchange rate between the two currencies determined by the market. In addition, all economic agents in the country will be required to accept bitcoin for transactions, unless they lack the necessary technology.
Bukele, who is known for his media-savvy approach and bold policies, hopes that the decision will create jobs and provide financial opportunities for those outside the formal economy. He believes that, in the long term, the move could contribute positively to humanity’s economic development.
