The biggest news for Bitcoin over the last week has been its registry as the legal tender of El Salvador. This makes the country the first-ever nation in the world to accept a cryptocurrency as its legal tender. The President of the country, Nayib Bukele has proposed a law that underlines the proposals- which was passed with a supermajority- that is, it collected 62 out of a possible 84 votes.
Bitcoin To Be The Only Legal Tender For El Salvador
The so-called Bitcoin Law has several interesting proposals, amongst which the most important would be the acceptance of BTC as well as the USD. The merchants of the country would be expected to present the prices of both goods and services in both of the currencies. The government is also going to implement an official BTC wallet for its citizens to use. They also have the provision of using private providers if they so choose to do so.
Another important law that has been passed states that permanent residency would be available for those who would invest more than 3 BTC in the country- which has led to an implementation period of 90 days.
With the implementation period undergoing, the president has asked the geothermal electric company owned by the state to start looking for plans to offer facilities to miners of Bitcoin which would be 100% clean, very cheap, as well be 100% renewable- it is expected a plan would come out keeping the volcanoes in the country as their energy source.
As has been expected, most of the reaction from crypto regulators hasn’t been entirely positive. One of the executives from the Bank for International Settlements has already declared the move of El Salvador as quite interesting- whilst warning that the cryptocurrency has yet to pass their test as a mode of payment. The International Monetary Fund has also put forward its warnings that the decision to use Bitcoin as legal tender could have dangerous financial and legal transactions.
