Bitcoin Is Now Legal Tender In El Salvador

Bitcoin Is Now Legal Tender In El Salvador

The world largest cryptocurrency has become a legal currency in El Salvador. Following a congressional vote held on Tuesday, a significant majority agreed to adopt Bitcoin and use it alongside the country’s other currency, the US dollar.

In the words of El Salvador’s President, this decision has made “history”. Within the next 90 days, all businesses in the country will need to provide options for their customers to be able to pay using Bitcoin. Since BTC is a digital currency, businesses that do not have the I.T. infrastructure to accept cards and similar options could be exempted from this new law.

A Better Way to Send Funds Back Home

One of the main reasons behind the country’s significant decision is the high volume of El Salvadorian ex-pats sending money back home. It is estimated that around $4b are transferred each year. These funds can now be sent via Bitcoin, using oftentimes cheaper and faster transfer methods. With no bank or other financial institution required, El Salvadorians can send and receive Bitcoin with just a cryptocurrency wallet.

The Effect on Bitcoin’s Price

Following weeks of losses, the news from El Salvador was just what the crypto community was hoping for. Within hours of the news, the price of the world’s largest cryptocurrency rose from around $31,428 to $36,583. At the time of writing this news piece, Bitcoin’s price is rising past $37,000.

Cryptocurrencies continue to make headlines as major personalities, such as Elon Musk and President Trump, as well as financial institutions, such as the Bank of England, shared their views on them in just the past couple of weeks. This has led to increased volatility and a renewed interest to buy Bitcoin and Altcoins.

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