Cryptocurrency is continuously creating a buzz in the investment sector. In the last few days, the crypto market has shown a decline and it has worried the crypto investors a lot. Bitcoin, the largest valued cryptocurrency globally, is among the most affected cryptocurrencies due to the market downfall.
El Salvador Approves Bitcoin as Legal Tender
Finally, there is a piece of good news for Bitcoin holders. El Salvador has passed a law to accept Bitcoin as legal tender. El Salvador became the first country in the world to accept Bitcoin as legal tender. As soon as the law became public, Bitcoin’s value surged by 5%.
Financial experts and investors have been divided into two categories. One category believes that there is no future for cryptocurrencies. Others have a strong belief in crypto and think that crypto will commonly be used as legal tender in the coming years. And El Salvador has proved them right by approving a law to accept Bitcoin as legal tender. The country has created a history by becoming the first who accepted crypto as legal tender globally.
El Salvador lawmakers showed immense trust in Bitcoin approving the law by a supermajority. Bitcoin law received 62 out of 84 votes in its support. El Salvador is one of the Central American countries. This news gave a much-needed boost to Bitcoin. Its value surged by 5% to $34239.17.
On Wednesday, El Salvador President Nayib Bukele sent the law to Congress for the vote. Talking about the proposed law, he said:
“The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.”
As per the law, now commodity prices will be shown in bitcoin. El Salvador citizens can use bitcoin to pay taxes also.
Bitcoin has seen more surges and downfalls compared with other currencies. Financial experts are still confused about how El Salvador will handle Bitcoin as legal tender.
How Bitcoin Legal Tender will Help El Salvador?
Currently, the US dollar is the official currency of El Salvador. Now onwards, US dollar exchange will be shown in bitcoin to exchange commodities.
The law also says:
“The country promotes the necessary training and mechanisms so that the population can access bitcoin transactions.”
According to the Bitcoin Law, approximately 70% of El Salvador citizens don’t have access to traditional financial services. Cryptocurrency is seen as a way to increase financial inclusion.
Last week, Bukele announced that the country has collaborated with Strike digital wallet firm to develop El Salvador financial infrastructure using bitcoin.
Experts already predicted a partnership between bitcoin and El Salvador due to last week’s decision.
Now, the country faces the major challenge of how it will handle crypto exchange. It requires modern technical infrastructure in the whole country to make the recent law successful.
Strike, the digital wallet firm will play a key role in the bitcoin legal tender establishment in El Salvador. Is this a breakthrough crypto market that was waiting? Are we going to see more countries that accept crypto as legal tender?