Bitcoin will soon be an official currency in El Salvador

It is the first country to make cryptocurrency legal tender

El Salvador has passed a resolution to make bitcoin a legal currency, making it the first country to do so (Via GuardianBy law, citizens would be able to do everything from paying taxes and paying off debt to buying goods and services using bitcoin. The move was backed by President Nayib Bukele, who says it is a way to help people who do not have access to banks, and who want to send money back into the country from abroad, but critics are concerned. That it would be more show than actual change.

The resolution was passed by El Salvador’s Congress on Tuesday night after Bukelek It was announced at a bitcoin conference in Miami. Last week. It was not a close call, with 62 of 84 legislators voting for it, but it is worth noting that Bukele wields a large amount of political power in the country – his party forms the majority of Congress, which allowed him control most of the government earlier this year.

While bitcoin will become an official currency for El Salvador in just three months, it will not be the only currency – the US dollar, previously the country’s only currency, will be sticking around as an option, though. According to cryptonews Bukele said he wants citizens of the country to think of money in terms of bitcoin rather than dollars. The proposal stated that citizens should be able to convert between the two currencies at any time, and that the US dollar would “be used as the reference currency” for accounting.

According to GuardianSome human rights groups focused on Central America are skeptical about the adoption of bitcoin that has led to meaningful change for many citizens of the country. One concern is that the country’s lower class will not have access to the technology needed to use and store bitcoin. While the law requires anyone offering goods or services to accept bitcoin, it does. there is an exception For those who don’t have access to technology. The law says the government will “promote the necessary training and mechanisms” to allow the population to use bitcoin.

The country is not currently a major center for bitcoin mining – according to Cambridge University estimates, it is not in the top 10 mining countries. In fact, according to university maps, El Salvador contributes 0.00 percent of the global computing power that is put toward bitcoin. Bukele, however, was looking to change this – he tweeted That the state-owned electric company has been directed to provide cheap electricity for mining powered by volcanoes (no, that’s no joke).

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