El Salvador ensures itself to be the first country in the world to make Bitcoin the legal tender of the country. This decision was passed after Congress approved President Nayib Bukule’s proposal on Wednesday (9/6/2021).
The Congressional decision resulted in 62 of 84 votes in favor of adopting Bitcoin. Although it is possible that there are concerns about the impact of the El Salvador program on the decisions of the International Monetary Fund (IMF).
President Bukule has been touting about Bitcoin. According to him, cryptocurrencies can help Salvadorans who are abroad send money home.
Dollar Also Becomes Legal Instrument of Payment
He also added that the US dollar will still be a legal tender. El Salvador does not have its own currency. In a tweet before the vote in Congress, he said new policies could bring inclusion to his country.
“This will bring financial inclusion, investment, tourism, innovation and economic development to our country,” Bukule wrote.
Quoting from Reuters, Bukulele also said it had instructed state-owned geothermal power company LaGeo to develop a Bitcoin mining facility offering service using renewable states from volcanoes.
The president had the idea to build a Bitcoin development center in the country’s geothermal potential. He added that El Salvador will offer citizenship to people who show proof of having invested at least three Bitcoins.
Full Support from El Salvador for Bitcoin
In order to support Bitcoin, he also added that the use of Bitcoin will be an individual choice and not carry any risk for users. The government also guarantees convertibility to dollars when transactions exceed the US$150 million held at the state development bank.
The new law stipulates that Bitcoin must be accepted by companies as payment for goods and services. Contributions to taxes can also be paid via cryptocurrency.
“If you go to McDonald’s or whatever, they can’t say we’re not going to take your Bitcoin, they have to take it because it’s legally legal tender,” said Bukule.
Meanwhile, as a legal tender, it will start within 90 days. The price of the Bitcoin-Dollar exchange rate will be determined by the market.