El Salvador makes history as it becomes the world’s first country to formally adopt cryptocurrency.
Its Congress had overwhelmingly voted to approve a law classifying Bitcoin as legal tender, President Nayib Bukele said Wednesday (09).
With 62 out of 84 possible votes, lawmakers voted in favor of the move to create a law to adopt bitcoin, despite concern about the potential impact on El Salvador’s program with the International Monetary Fund.
El Salvador has used the U.S Dollar as its official currency since 2001 which bitcoin will now join, not replace.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
— Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
The usage of bitcoin will be optional for individuals and would not bear risks to users, Mr. Bukele said, with the government guaranteeing convertibility to dollars at the time of transaction through a $150 million trust created at the country’s development bank BANDESAL.
Under the new law, bitcoin must be accepted by all firms when offered as payment for goods and services, while tax contributions can also be paid in cryptocurrency.