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First country to adopt Bitcoin as legal tender unveiled

The country’s government looks to promote Bitcoin mining as well

El Salvador Bitcoin

First country to adopt Bitcoin as legal tender unveiled. Source: shutterstock.com

Bitcoin is now a legal tender in El Salvador.

The acceptance comes after a majority vote by the country’s legislature in favor of the president’s move to adopt the digital currency. In the legislature voting, 62 votes were casted in favor of the currency while 19 rejected the bill. Three members were absent.

President Nayib Bukele’s major aim for accepting Bitcoin is to boost the country’s financial inclusion. In the country, only about 30% of the residents can access utilities services. After the approval of the bill, Bitcoin users will not be required to use government-regulated wallets.

Every enterprise will be mandated to accept Bitcoin as a payment method for the provision of services or goods. Any entity that is not willing to risk the use of the currency will be back-stopped by the authorities.

The government will also establish trust. The trust will be vital in the conversion of the currency to US dollars and take on the risk posed to sellers. The trust fund will hold approximately $150 million. The Development Bank of El Salvador will also sell the currency. This will aid in the replenishment of the fund.

International Monetary Fund and El Salvador government representatives are set to hold a meeting to talk through the plan. This comes as El Salvador’s government looks to promote Bitcoin mining.

We’ve reported that average British investor would have made £8k by trading BTC at the right time.

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