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El Salvador Officially Recognizes Bitcoin as Legal Tender

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El Salvador Officially Recognizes Bitcoin as Legal Tender

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Three months after the Bitcoin law passed the country’s legislature, Bitcoin is now officially a legal tender in El Salvador.

Although the move was a world first, the President of El Salvador, Nayib Bukele, said in a tweet that the country’s “Bitcoin process” is accompanied by a “learning curve”.

The El Salvador legislature passed the bill on June 9th with an absolute majority. 62 members voted for the bill, 19 against and 3 abstained. Three months later, it’s official. 

The law is not without controversy or opposition, and some people call it unconstitutional. In June, the International Monetary Fund stated that El Salvador’s move posed several macroeconomic, financial and legal problems.

Similarly, JPMorgan Chase has indicated that El Salvador’s economy may face headwinds, suggesting that its use cases as a medium of exchange may have potential “limitations”.

Despite these claims, there has been support from the crypto community. To show their support, crypto-followers are buying $30 worth of bitcoins to match Salvadorans who are getting the same amount preloaded onto a government-sanctioned digital wallet.

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In the 75,489 votes from MicroStrategy CEO Michael Saylor, 82% of respondents said they would buy $30 worth of Bitcoin.

El Salvador Buys Its First 200 Bitcoins

El Salvador’s President Nayib Bukele announced the milestone on Twitter, telling supporters that the country “just bought the first 200 coins”.

Bukele pointed out that as the deadline approaches, Central American countries will buy more bitcoins, making El Salvador the first country to officially recognize Bitcoin as legal tender.

With a current Bitcoin price of 1 BTC of $52,000, the purchase value is approximately $10.4 million.

Buying Bitcoin will allow the government to provide liquidity for their new Bitcoin economy so that businesses, households, and individuals can use BTC to make payments or accept payments.

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