El Salvador becomes the First Country in the World to Make Bitcoin a Legal Tender, Pushes BTC Price towards US$35,000
Cryptocurrency adoption has received a shot in the arm after El Salvador becomes the first country in the world to pass a bill in congress to make Bitcoin (BTC) a legal tender. El Salvador’s President Nayib Bukele has said on Wednesday that Congress has voted overwhelmingly (62 out of 84 votes) in favor of a law that classifies Bitcoin as legal tender. He also said that the adoption of Bitcoin will help the country in boosting foreign investment, generate jobs, and improve financial inclusion.
Reports say that Bitcoin is going to become the legal tender of El Salvador in 90-days. After which all businesses in the country must accept BTC alongside the US Dollar for goods and services. President Nayib Bukele had said earlier that acceptance of Bitcoin as a legal tender would help most people in accessing financial services because 70% of the population doesn’t have any bank account. As 20% of the country’s GDP comes from remittances sent by El Salvadorians from abroad, acceptance of BTC as a legal tender would help them in transferring the money at a lesser cost.
This vote in favor of Bitcoin as the legal tender is reportedly going to be a gamechanger for the business world as Bitcoin now becomes a practical asset and El Salvadore becomes the new cryptocurrency hub. However, this vote may interfere with the country’s plans of securing US$1 billion from the IMF (International Monetary Fund).
Analysts believe that this latest move by El Salvadore may encourage other Latin American countries such as Brazil and Panama to walk in the footsteps in a more casual manner.
This news has also rejuvenated the Bitcoin market and helped it to bounce back from the US$31,000 level towards the US$35,000 level. In the last 24-hours, the price of BTC has increased by around +7%. At press time, the BTC/USD pair was hovering around US$34,985.41.