The bitcoin agenda of El Salvador has gone from being an idea to a solid reality. The country had announced not too long ago that it was planning to ensure bitcoin would become legal tender within its borders after spending many years relying on USD. It looks like the nation has finally gotten its wish.
El Salvador Is Pushing BTC Like No Other Country
Beginning on September 7 of this year, bitcoin can be used legally as currency to purchase goods and services in El Salvador. While the use of bitcoin is completely optional (individuals can still pay with cash), stores cannot deny services to those seeking to pay with bitcoin, nor can businesses refuse to work with firms delving in bitcoin and crypto.
The road to making bitcoin legal tender has not been easy. El Salvador initially approached the World Bank for assistance, though the financial institution was quick to turn the country down, citing its concerns with bitcoin’s volatility for refusing help. However, members of El Salvador’s Congress were enthused by the idea and were happy to offer approval, making bitcoin an official currency of the Central American nation.
President Nayib Bukele explained the circumstances of the new law in a statement:
The use of bitcoin will be optional. Nobody will receive bitcoin if they do not want it… If someone receives a payment in bitcoin, they can choose to automatically receive it in dollars.
While El Salvador is now the first country to officially accept bitcoin as money, things will not be doled out overnight. The country has highlighted that all salaries and pension payments will continue to be offered in USD, though this could potentially change in the future.
El Salvador is also getting a special bonus that is likely to push the bitcoin agenda even further. Athena Bitcoin – a digital currency ATM firm – has announced it will install approximately 1,500 crypto ATMs throughout El Salvador to assist those looking to send and receive remittance payments.
Helping Those Who Need Crypto the Most
Bukele has stated in the past that he is concerned about the financials of El Salvador residents working abroad. Most of the time, transactions are typically limited by heavy fees, which ultimately mean families do not receive all the money they should. He is confident that bitcoin could potentially solve some of these problems. He mentioned:
One of the reasons we passed the bitcoin law is precisely to help people who send remittances.
El Salvador is not only heightening its presence on the crypto map. It is pushing bitcoin closer to its initial goal, which is to serve as a payment currency and potentially push fiat and credit cards to the side. Volatility has often gotten in the way of this goal, and El Salvador is likely to make bitcoin much more attractive to other developing nations.