San Salvador: The Central American country of El Salvador has become the first country in the world to legalize bitcoin.
According to the British News Agency, the ruling party of El Salvador had proposed to legalize the corrupt currency in the country a few days ago. In today’s meeting, Congress approved the proposal of President Nayib Bukele. In a vote to legalize cryptocurrency, 62 out of 84 votes were cast in favor of legalizing cryptocurrency in the country.
Also read: Donald Trump calls bitcoin a ‘fraud’.
In 90 days after the legislation, the US dollar, as well as the bitcoin, will be declared the legal currency of El Salvador. Under the new law, every business will be required to accept bitcoins for transactions of goods and services.
The president of El Salvador called the decision “historic” and said it would make it easier for citizens abroad to send money home.
He had said in his tweet just moments before the vote that the decision would lead to investment, tourism, innovation and economic improvement in our country’s financial system. And it will open the door to financial services for 70% of El Salvador’s citizens who do not have bank accounts.
It should be noted that El Salvador’s economy is largely dependent on remittances, which account for 20% of the country’s gross domestic product. The Central American country has a population of over two million abroad, but these Delhi-born citizens send home 4 billion dollars in foreign exchange annually.
El Salvador’s decision has been praised by some legal observers and financial institutions, while others have expressed concerns about the insecurity of cryptocurrency. Experts say the decision could complicate matters with the International Monetary Fund (IMF) in El Salvador. El Salvador has more than 1 1 billion in IMF-funded programs.