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Bitcoin Becomes Legal Tender in El Salvador

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El Salvador became this Tuesday the first country in the world in which bitcoin is legal tender as an exchange currency, along with the US dollar, when the legislation approved last June came into force.

Economic agents, according to the legislation endorsed by the ruling party in the Legislative Assembly, are obliged to accept the cryptocurrency and all prices of products and services must be expressed in dollars and bitcoin.

The Government has more than 200 million dollars for the start-up of the project and, on the eve, it bought bitcoin equivalent to more than 21 million dollars at the price recorded on Monday.

The use of bitcoin has become, since its surprise announcement at a conference in Miami and its prompt approval, the main economic bet of the president of El Salvador, Nayib Bukele, after the covid-19 pandemic.

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“Like any innovation, the #Bitcoin process in El Salvador has a learning curve. Every path to the future is like that and not everything will be achieved in a day, nor in a month,” Bukele posted on Twitter on Monday night.

“But — he added — we must break the paradigms of the past. El Salvador has the right to move towards the first world.”

Opinion polls reveal that this is Bukele’s first project rejected by a large part of the population despite the fact that the president maintains high levels of popularity.

According to the survey of the Public Opinion Institute, 66.7 % of the population believes that the Bitcoin Law should be repealed and 65.2 % disagreed that the Government should use public funds to finance the implementation of the crypto-asset.