September 23, 2021

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El Salvador is the first country in the world to recognize Bitcoin as an official currency

El Salvador is not waiting for anything. A country on the Pacific coast of Central America today, September 7, was the first country in the world to recognize the cryptocurrency Bitcoin as an official currency. The post reports the news interested in trade.

The President of El Salvador, Nayib Bukele, made his comment on Twitter yesterday in a post in which he proudly announced the successful purchase of 200 Bitcoin. However, he added that investing in cryptocurrency will continue. He really kept his word. Just hours later, Bukele announced the purchase of another 200 Bitcoins. In general, El Salvador bought yesterday 400 Bitcoinov.

The law was passed three months ago

The relevant law on the recognition of cryptocurrencies as an official currency was approved in June, and is effective as of today. Bitcoin is the very second main currency. From now on, all market players in El Salvador are obligated to accept cryptocurrency as a form of payment for products and services. It can also be used to pay taxes.

It is very surprising that El Salvador is claiming such heroism. According to the World Bank, in terms of postal population, it is the smallest country in Central America. Its economy is supposed to be up to Ranked 106 out of 195 countries.

Not every Bitcoin welcomes it with open arms

However, not everyone is satisfied with the new law. Residents complain that they have received almost no official communication from the government in this regard, so they do not know what this change means for them in particular. The World Bank and rating agencies have questioned the Central American country’s decision, saying it could jeopardize IMF loan negotiations, put domestic insurance companies at risk or even impair the bitcoin network.

In San Salvador, the capital of El Salvador, protests erupted last month, during which people forcefully expressed concerns about pension payments or increased money laundering. He has reservations about the new law even 75% of Salvadorans.

However, Bukele is still very proud of his plan. The 40-year-old president called the opposition on Twitter last month “liars”which will be disclosed once the law enters into force. He added that those who worry about their pension or business can still work with dollars. No Bitcoin payment required. However, he is obligated to accept it if someone wants to push it.

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