Bitcoin Becomes a Legal Payment Instrument in El Salvador

Bitcoin Becomes a Legal Payment Instrument in El Salvador

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Recently, the crypto market has been worried by bad news from crypto assets, starting from the former US president, Donald Trump, who gave criticism back to the crypto world, then there was news that informed that the topic of crypto was the main focus of the G7 country meeting.

However, out of all the bad news, there is still a lot of good news about crypto assets! So, you don’t have to worry! There is increasingly a bright future for crypto assets, especially Bitcoin. You must know, recently, on last Wednesday, Bitcoin was officially used as a means of payment in El Salvador. Before that, let’s first look at how the economy in this country is.

Getting to Know El Salvador’s Economy
El Salvador Makes Bitcoin a Legal PaymentEl Salvador is a country in Central America, on the border with Honduras and Guatemala. The state of the economy of this country of El Salvador, relies heavily on sending cash or waiting for transfers from people living abroad, because more than two million El Salvadorans are abroad. El Salvadorans who are abroad continue to send money transactions to their country with a total of $4 billion dollars.

Financial services in El Salvador are currently quite burdensome. Because it can take days to receive the money and sometimes the money needs to be withdrawn in person.

Even you need to know, 70 percent of the population in El Salvador does not have a bank account or credit card so they usually rely on cash. Therefore, President Nayib Bukele hopes that his opinion can be formalized to make it easier for the public to make payments.

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El Salvador Makes Bitcoin a Legal Payment
Crypto currency, Bitcoin is official in this country along with the US dollar and became the first country you know that made Bitcoin official as a means of payment. This is because, according to yesterday’s meeting on Wednesday, MPs agreed with the opinion given by the president of El Salvador, Nayib Bukule. There are 62 votes out of 84 MPs who agree that Bitcoin will become a means of payment in El Salvador in addition to the US Dollar, so the law on Bitcoin has been approved by the Congress of this country.

El Salvador Makes Bitcoin a Legal PaymentSo with Bitcoin regulations that are legal in this country, the government hopes to help citizens have more practical and efficient payments, given that Bitcoin or other crypto assets do not require bank accounts or passbooks, because they are already stored in digital wallets. El Salvador will now work with digital finance company Strike to help plan Bitcoin as a world-class currency, because El Salvador itself does not yet have a good financial system. In addition, people from El Salvador no longer need to transfer money that takes a long time.

This news led some experts to say that Bitcoin and other cryptocurrencies could be used as a measure to counter macroeconomic conditions. Hopefully many countries will follow the rules like El Salvador!

The news about El Salvador made the bitcoin price move in a support position. In the past day, bitcoin increased 12 percent. In addition, some hard forks or bitcoin derivatives, such as bitcoin diamond and bitcoin gold also moved up, even higher than the increase in bitcoin (BTC).

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This innovation and several other innovations at the Miami conference last week had an impact on the bitcoin price increase that occurred in recent days.