El Salvador is the first country to recognize BTC as legal tender
This idea has its supporters and opponents, the latter constitute the majority in a population of 6.5 million, but the rulers want to give bitcoin a chance.
The president of El Salvador, Nayib Bukele, came out with a proposal to adopt BTC as legal tender, and last Wednesday, Congress approved the bill. The main argument of the current president in favor of accepting bitcoin was the use of its potential in international transactions. A large part of the Salvadoran community works abroad, supporting their families who stayed there. Remittances were burdened with additional costs and waiting time which influenced the financial liquidity of the inhabitants. According to the president, BTC will bring the country financial integration, develop investments, tourism and make the economy innovative. The next step is to build a BTC mining center based on the country's geothermal potential. The president commissioned the national company LaGeo to develop a design for a cryptocurrency mining facility using renewable energy from volcanoes.
Under current law, Bitcoin will have to be accepted by all companies as a means of payment in exchange for their products and services. Payment of contributions and taxes will also be able to be based on cryptocurrency transactions. The government will guarantee convertibility into dollars at the time of the transaction through a $ 150 million trust fund set up at the national development bank BANDESAL.
"If you go to McDonald's or whatever, they can't say we won't take your bitcoin, they have to take it legally because it's legal tender," Bukele said.
Its use as legal tender will start in 90 days, with the bitcoin-dollar exchange rate set by the market.
Cryptocurrency proponents have hailed the move as legitimating emerging assets, but its impact on bitcoin adoption in other countries remains apparent.
"In a world first, El Salvador makes bitcoin legal tender" https://www.reuters.com/world/americas/el-salvador-approves-first-law-bitcoin-legal-tender-2021-06-09/