• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Nexo

El Salvador Set to Accept Bitcoin as Legal Tender

San Lee by San Lee
1 year ago
in News, Bitcoin
1
Advertisement

El Salvador is set to become the first nation to accept Bitcoin as legal tender. In an announcement at the Bitcoin 2021 conference earlier today, El Saldavor’s President Nayib Bukele said that the bill to legitimize the major cryptocurrency as legal tender was well under way.

“Next week I will send to congress a bill that will make Bitcoin a legal tender,” he said.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The government of El Salvador is reportedly working with Strike, a lightning network payments platform, to work out the logistics of integrating Bitcoin into El Salvador’s financial system. Jack Mallers, the founder of Strike, was also responsible for hosting the presentation. 

El Salvador’s Sparse Financial System Leaves Room for Bitcoin

When asked of El Salvador’s historic decision to accept Bitcoin as a valid form of currency, Mallers pointed to the nation’s lack of financial infrastructure: 

“Over 70% of the active population of El Salvador doesn’t have a bank account. They’re not in the financial system. They asked me to help write a plan and that they viewed Bitcoin as a world-class currency and that we needed to put together a Bitcoin plan to help these people.” 

The move makes El Salvador the first ever country to make a non-fiat currency a legal tender. What’s interesting is that, compared to most other sovereign nations, El Salvador does not have its own currency — at least not anymore. After a civil war in the late 1980s, the country introduced the U.S. dollar as its new official currency and ditched the Colon. 

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!
While the Salvadoran Colon (SVC) remains in circulation with monetary value, the historic currency is rarely used or accepted nowadays. Source: Tradingview.com

Bitcoin Could Provide Stability and Independence

What this means is that El Salvador’s central bank cannot print its “own” currency. Other countries like the U.S. and China have begun creating their own central-bank digital currencies (CBDCs) to mitigate crypto from weakening their fiat currencies.

El Salvador’s unique economic position, however, allows the nation to freely accept cryptocurrencies without causing detrimental economic implications. 

Related Reading | Eastern Carribean Central Bank Launches First Union-Backed Central Bank Digital Currency (CBDC)

Another reasoning behind the move may be due to the nation’s over-reliance on the U.S. dollar. While the dollar has provided economic stability to El Salvador for decades, the recent fears of inflation — whether overblown or not — could negatively affect the nation’s relatively small economy. 

While Bitcoin’s decentralized and limited nature makes it impervious to inflationary forces, there’s no doubt that the major cryptocurrency remains as volatile as ever. In the past two months, Bitcoin (BTC/USD) has declined over 40% from its February-highs. Source: Tradingview.com

With the likes of the Turkish Lira plummeting in value due to unchecked monetary policy, Bitcoin’s decentralization and scarcity could be the answer for many small economies like El Salvador. 

Featured image from UnSplash
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
San Lee

San Lee

Related Posts

Bitcoin

Bitcoin Bear Market Sends On-Chain Metrics Into Sideways Trend

4 hours ago
bitcoin addresses

Decline In Bitcoin Active Addresses Suggests Market Is Purging Paperhands

6 hours ago
Crypto

Crypto Lender Voyager Digital Goes Bankrupt After Three Arrows Collapse

8 hours ago
South African Firm Raises $150 Million To Introduce Crypto Water Tokens Dubbed H2ON

South African Firm Raises $150 Million To Introduce Crypto Water Tokens Dubbed H2ON

15 hours ago
Jordan Belfort

Jordan Belfort, The ‘Wolf Of Wall Street,’ Advises: Buy Bitcoin Today And Make Money

16 hours ago
Bitcoin

Bitcoin Saw Largest Ever Monthly Withdrawal From Exchanges In June

1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.