Business

El Salvador Becomes First Country To Make Bitcoin A Legal Tender

He said a majority of 62 out of 84 lawmakers approved the bill, which he proposed last week.

The Congress of El Salvador has approved a law that will classify Bitcoin as legal tender in the Central American country, its president said, making it the world’s first nation to adopt a cryptocurrency.

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

“History!” the president added.

He said a majority of 62 out of 84 lawmakers approved the bill, which he proposed last week.

The law passed with the support of Bukele’s allies despite minority opposition parties — who had criticised the speed of the vote — refusing to back it.

Before the vote, Bukele said adopting the cryptocurrency would bring “financial inclusion, investment, tourism, innovation, and economic development” to the country.

The Salvadoran leader has hailed bitcoin as “the fastest-growing way to transfer” billions of dollars in remittances and to prevent millions from being lost to intermediaries.

Remittances from Salvadorans working overseas represent a major chunk of the economy — equivalent to roughly 22 percent of Gross Domestic Product.

In 2020, remittances to the country totaled $5.9 billion, according to official reports.

“This is a law that will put El Salvador on the world’s radar, we will be more attractive for foreign investment,” Romeo Auerbach, deputy of the Grand Alliance for National Unity party, an ally of Bukele, said.

The cryptocurrency market grew to more than $2.5 trillion in mid-May 2020, according to the Coinmarketcap page, driven by interest from increasingly serious investors from Wall Street to Silicon Valley.

ALSO READ  Dr Mohammed Ibrahim Awal – Government to partner AGI to promote domestic tourism

But the volatility of bitcoin — currently priced at $33,814 — and its murky legal status has raised questions about whether it could ever replace traditional currency in day-to-day transactions.

AFP

NewsWestAfricans

NewsWestAfricans


All Right Reserved. This material and any other digital content on this platform may not be reproduced, Published, Written or Distributed in full or in part, Without Written Permission from NEWS WESTAFRICANS Media.

You may also like

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please turn off the Ad Blocker from your browser to continue browsing our site.