El Salvador in its recent move has approved the use of bitcoin as legal tender, according to the country’s President, making it the first-ever country to first make this move.
Lawmakers in the Country’s Congress passed had on Tuesday, June 8, passed a bill that allows cryptocurrency to be used in carrying out different transactions daily.
The president on Tuesday tweeted that;
“The #BitcoinLaw has just been approved by a qualified majority” in the legislative assembly”
The president further described the move made by the country as being historical.
With 62 out of 84 possible votes, lawmakers voted in favor of the move to create a law to adopt bitcoin, despite concern about the potential impact on El Salvador’s program with the International Monetary Fund.
Bukele said on Twitter before the vote in Congress: “It will bring financial inclusion, investment, tourism, innovation, and economic development for our country.”
The use of bitcoin will be optional for individuals and would not bring risks to users, President Bukele said.
The government will guarantee convertibility to dollars at the time of transaction through a trust created at the country’s development bank BANDESAL.
Its use as legal tender in El Salvador will go into law in 90 days, with the bitcoin-dollar exchange rate set by the market.
Under the “Bitcoin Law”, firms must accept bitcoin when offered as payment for goods and services. Tax contributions can also be paid in bitcoin.