El Salvador has become the first country in the world to adopt Bitcoin as legal tender after Congress approved President Nayib Bukele’s proposal to embrace the cryptocurrency. With 62 out of 84 possible votes, lawmakers voted in favor of the move on Tuesday to create a law to adopt Bitcoin, despite concerns about the potential impact on El Salvador’s program with the International Monetary Fund.
Bukele has touted the use of Bitcoin for its potential to help Salvadorans living abroad to send remittances back home, while saying the U.S. dollar will also continue as legal tender. Under the law, Bitcoin must be accepted by firms when offered as payment for goods and services. Tax contributions can also be paid in the cryptocurrency. Its use as legal tender will begin in 90 days, with the Bitcoin-dollar exchange rate set by the market.
Cryptocurrency supporters hailed the move as legitimizing the emerging asset, but its impact on Bitcoin regulation, taxation or adoption in other countries remains to be seen. Still, there were no immediate signs that other countries would follow El Salvador’s embrace of Bitcoin.
Courtesy: Global News