Embracing Bitcoin – El Salvador Paves the Way for Global Adoption

HodlX Guest Post Send Your Message El Salvador's President Nayib Bukele recently announced that El Salvador has adopted Bitcoin as legal tender and will open its arms to crypto companies in the coming months. The vote was passed with a super majority at the parliamentary meeting last week. Background The Spanish-speaking country is the smallest in Central America and is known for its world-famous coffee, gorgeous surf beaches, and numerous volcanoes. Interestingly, more than 70% of the population does not have a bank account, but it has one of the highest mobile penetration rates in the world, with 125 out of 100 people owning a mobile phone. El Salvador means "savior" in Spanish, and some hardcore Bitcoiners are likely to emulate this country. President Nayib Bukele, along with Strike's Jack Mallers, used the Bitcoin 2021 Miami conference to announce that El Salvador will allow Bitcoin as legal tender. “Next week, I will submit a bill to Congress that will make Bitcoin legal tender,” said President Nayib Bukele. Strike CEO Jack Mallers said: “More than 70% of El Salvador's active population does not have a bank account. They are not in the financial system. They asked me to help me write a plan and they said they see Bitcoin as a premium currency and that we need to create a Bitcoin plan to help these people." Later, the bill was passed with a 'super majority' (62% of 84 votes) Bitcoin as Legal Tender El Salvador was the first country in the world to openly adopt Bitcoin as legal tender and enforce favorable regulations to accommodate companies targeting cryptocurrencies. Citizens in the country can provide goods and services with Bitcoin in addition to the US dollar currently widely used in the country El Salvador currently has more than $2.5 billion in foreign exchange reserves, and it remains unclear whether it will be able to convert some of the country.

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