El Salvador has become the first country in the world to make the cryptocurrency Bitcoin legal tender.
The Bitcoin Law was passed by the Legislative Assembly of El Salvador on 8 June 2021, giving the cryptocurrency bitcoin the status of legal tender within El Salvador after 7 September 2021. It was proposed by President Nayib Armando Bukele Ortez.
Currently, El Salvador’s government holds 550 Bitcoin which is equivalent to about US $26 million. The country’s other currency is the U.S. dollar.
El Salvador’s President, Nayib Armando Bukele Ortez has said that the policy that took effect Tuesday morning was historic which was given thumbs up by the digital currency advocates.
A sitting President of El Salvador is a 39-year-old politician and businessman who became the country’s 43rd and serving since June 1, 2019.
Known as the Land of Volcanoes, El Salvador has frequent earthquakes and volcanic activity. It is the only country in Central America that does not have a coastline on the Caribbean Sea.
Meanwhile, food and drink franchises including Starbucks Corp. and Pizza Hut Inc. are receiving payments in Bitcoin after El Salvador adopted the cryptocurrency as businesses are required to accept Bitcoin in exchange for goods and services, though merchants who are technologically unable to receive the e-currency are exempt from the law.
