There was a lot of confusion about the use of cryptocurrency bitcoin for a long time. Because its future was not secure, people were avoiding investing in it. However, putting an end to all these speculations, the legal adoption of bitcoin has been approved in El Salvador. It became the first country where people would be able to formally use bitcoin since Congress approved President Nayib Bukele’s proposal to adopt cryptocurrency.
Most lawmakers agreed to formally adopt bitcoin. About 62 votes out of 84 were given in its favour. Lawmakers agreed to use bitcoin as a currency. Despite concerns about a possible impact on El Salvador’s program with the International Monetary Fund.
Although Bukele has for now touted the use of it to help send home Salvadorans living abroad, the U.S. The dollar will continue to be legal tender. “It will bring financial inclusion, investment, tourism, innovation and economic growth to our country,” Bukele said in a tweet shortly before the vote.
He also said that the use of bitcoin would be optional, leaving no risk to the users. A law will be introduced within 90 days to make bitcoin usable as a legal tender. “The government will guarantee the convertibility of the exact value in dollars at the time of each transaction,” Bukele said. It is known that the dollar economy of El Salvador relies heavily on repatriated money from workers abroad. World Bank data shows that in 2019, about $ 6 billion was sent to the country. This accounts for about one-fifth of GDP, one of the highest proportions in the world.