El Salvador becomes the first country to accept Bitcoin as a legal offer
On September 7, 2021, El Salvador wrote history by being the first country in the world that Bitcoin accepted as a legal offer. This decision has been announced by President Nayib Bukele, who believes that the use of Bitcoin will help increase the economy and financial integration of the country.
The move to make Bitcoin in El Salvador a legal offer was made possible by the adoption of the Bitcoin Act in early June, which was approved by the country’s congress with a super majority vote. The law states that all companies have to accept Bitcoin as a form of payment and that the government provides the necessary infrastructure to facilitate transactions in cryptocurrency.
President Bukele was a loud supporter of Bitcoin and quoted his potential to revolutionize the way people deal with money and carry out transactions. He also emphasized the advantages of using Bitcoin, such as: B. lower transaction fees and faster payment processing times.
One of the most important motivations for El Salvador’s decision to take over Bitcoin is to ensure financial access to the uniaption in the country. According to the World Bank, around 70% of adults in El Salvador have no access to traditional banking services, which makes it difficult for them to take part in the formal economy. By using Bitcoin, these people can make and receive payments without the need for a bank account.
The decision to take over Bitcoin was not without controversy. Critics have expressed concerns about the volatility of the cryptocurrency, in which dramatic price fluctuations have been found in recent years. There are also questions about the possible effects on the environment because Bitcoin mining requires a considerable amount of energy.
Despite these concerns, El Salvador has progressed with his plan to take Bitcoin. President Bukele explains that the country describes history and leads the way for other nations to follow this example. The government has also introduced a digital wallet called Chivo, with which the citizens of Bitcoin worth 30 US dollars can receive free of charge if they download the app.
The acceptance of Bitcoin as a legally required offer in El Salvador marks an important milestone in the development of cryptocurrencies and its potential to change the global financial system. It will be interesting to see how this experiment unfolds and whether other countries will follow El Salvador’s leadership to consider Bitcoin as a legitimate form of payment.
