El Salvador Is The World’s First Country To Recognise Bitcoin As Official Currency

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El Salvador Bitcoin currency: In a big first for the cryptocurrency space, the Central American country of El Salvador has taken the lead in recognising Bitcoin as an official legal tender Tuesday. The US dollar, which is El Salvador’s currency, will retain status alongside Bitcoin.

This pioneering move comes following the Bitcoin Law, which was passed by the El Salvador assembly earlier this year on June 8, after a proposal from President Nayib Bukele, who is reportedly known to own cryptocurrency for some years now.

Marking September 7 as Bitcoin Day, Bukele announced on Twitter his country had purchased 200 new bitcoins taking their holdings to 400 coins, with more to come in the future.

As per reports by Bloombergthe government in El Salvador has installed 200 Bitcoin ATMs where currency can be exchanged for dollars. The wallet in use is Chivo, which for registered users, will reportedly come pre-filled with currency worth $30. Bitcoin will henceforth be accepted as tender for goods, services and tax payments.

In El Salvador Bitcoin Currency Takes Centrestage

Though the crypto space has boomed in recent times, as numbers show, concerns of market value fluctuation and volatility have prevented it from gaining complete legitimacy. In El Salvador too, polls reflect locals are “wary” of adopting Bitcoin as tender alongside the dollar, according to ReutersReports suggest protests have been held in the country over the issue.

Financial experts have also flagged the issue of money laundering that could potentially come saddling the use of digital currency. The World Bank and the International Monetary Fund too have cited drawbacks with regard to it. El Salvador’s economy has contracted almost eight percent in the last year during the pandemic.

In defence of his new law, Bukele has tweeted, “We must break the paradigms of the past. El Salvador has the right to advance towards the first world.”

The surfing town of El Zonte in El Salvador, which has been experimenting with what Bloomberg calls ‘Bitcoinification’ since 2019, is touted as a one-of-its-kind assessment of what life would be like if economies were to trade in crypto.

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