El Salvador, a country from Central America, has become the first state in the world to adopt bitcoin as legal tender.
On Wednesday, Congress lawmakers approved a proposal made by President Nayib Bukele to adopt the world’s biggest and well-known cryptocurrency. 64 out of 84 lawmakers voted in favour of legalising the digital currency.
President Bukele hopes that the move will help overseas Salvodoran to send remittances to the country. He said that the US dollar will continue as legal tender in the country, which practically does not have its own currency.
“It will bring financial inclusion, investment, tourism, innovation and economic development for our country,” Bukele said in a tweet after his proposal sailed through the Congress.
He announced that mining of the bitcoin will be made through renewable energy from the country’s volcanoes.
Bukele also announced to award citizenship to people who had invested in at least three bitcoins, Reuters reported.
Saying the currency will bring no risks to user, he said that the government will give guarantee to convert the digital currency to dollars.
Under the law, firms across the country will accept bitcoin as payment for goods and services. Tax contributions can also be paid in the cryptocurrency.
“If you go to a McDonald’s or whatever, they cannot say we’re not going to take your bitcoin, they have to take it by law because it’s a legal tender,” Bukele said in an online conversation with cryptocurrency industry persons.
The use of bitcoin as legal tender will begin in 90 days, with the bitcoin-dollar exchange rate set by the market.
