El Salvador has made history as the first country to accept Bitcoin as a legal currency.
The country’s congress voted overwhelmingly to approve President Nayib Bukele’s proposal to legalize cryptocurrency.
The president was excited at the move by Congress to support his proposal saying the development would make it easier for Salvadoreans living overseas to send money back home.
In the next 90 days, Bitcoin becomes legal tender in Elsalvador, alongside the USD.
This law means that every business must recognize and accept Bitcoin as legal tender for goods and services. An exception is only given to those businesses without the technology required to do the transaction.
A few hours before the vote, President Bukele tweeted saying accepting Bitcoin as legal tender will bring inclusion, innovation, investment, and economic development to the Central American nation
In the past, he has been quoted saying the move to bring Bitcoin on board would open up numerous financial services to over 70% of Salvadoreans who do not have bank accounts
The Salvadorean economy relies more on the money sent home by her citizens in the diaspora. These remittances (about $4 BILLION) make up about 20% of the country’s GDP
On social media, some financial experts hailed the move as a game changer while others expressed concerns about the currency’s volatility.
Currently, Elsalvador is seeking more than 1 billion dollars from the IMF. It remains to be seen how global financial body will react to the move to accept Bitcoin as legal tender
The historic vote to approve Bitcoin happened as former US President, Donald Trump unleashed a rant against Bitcoin calling it a Scam.