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El Salvador: The first country to accept BTC as legal tenderĀ 

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El Salvador: The first country to accept BTC as legal tender 

 

Following a proposal by President Nayib Bukele Bitcoin was appointed as legal tender after 62 out of 84 officials voted in favour for a law adopting bitcoin. This occurred in spite of concerns with the IMF(International Money Fund) from which they were requesting financial help in the billions.

 

El Salvador at the moment does not operate with its own currency due to an economic crisis; they scrapped their own currency and now operate using the U.S. dollar. Bitcoin provides another way for transactions to be settled in El Salvador that is not tied directly to another country. President Nayib also mentioned Bitcoin as possibly an easier way for people to send money back home to El Salvador. Right now approximately a 5th of their national income comes from remittance which is one of the biggest percentages worldwide.

 

The plan to establish Bitcoin in El Salvador has been set up through talks with LaGeo; a Geothermal state-owned energy company with plans to get clean reusable volcano energy from volcanoes and Strike, which is a crypto-based payment company settling small bitcoin payments on the lightning network.

 

While 70 percent of El Salvador lacks access to basic financial services, cryptocurrency can hopefully be a step in the right direction for the country. While some people and companies may disagree with that hope they will all comply eventually since businesses in El Salvador only have 90 days to adopt Bitcoin as a payment.