Official: Bitcoin legal tender in El Salvador

The Parliament of El Salvador has passed the law that makes Bitcoin a legal tender in the country. 

This was announced by the President and head of the government, Nayib Bukele, on his official Twitter profile, highlighting how the approval took place by a large majority, with almost 74% of the votes. 

Bukele heads the ruling party which has a large majority in Parliament, so it was more than reasonable to expect his proposal to be approved. 

The President also tweeted the entire text of the approved law, which shows that bitcoin in the country will also be forced to tender, given that in this text it is made clear that all “economic agents” are obliged to accept BTC as a means of payment. 

For example, one of the curious consequences of this law is that even Tesla will be forced to accept payments in bitcoin, even against his will , if he makes a sale on the territory of the Central American state. 

El Salvador does not have its own national currency, because its Salvadoran Colón (SVC) is now out of order. For now they are using the US dollar, but with this new law the USD will in fact be joined by BTC, as anyone in the country asking for a payment will be forced to accept both currencies. 

However El Salvador is a small country, with only 6.5 million inhabitants, and with a very small economy, given that it is in the 101st place in the world by GDP, but if similar decisions are adopted in other countries then the consequences could become meaningful. 

The fact is that several parliamentarians from other states, especially Latin America, have expressed their desire to discuss the possibility of adopting Bitcoin as legal tender in their countries, starting with Paraguay, but also passing through large countries such as Brazil, Mexico and Argentina. 

In fact, there are not a few Latin American countries that have problems with their national currency, starting with Venezuela, whose Bolivar is now waste paper, passing through Argentina, whose Peso, for example, has devalued by 30% in the against the dollar in the last 12 months, or Brazil itself, where inflation has gone from 2% to over 6% in the last year. 

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