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Saturday, September 18, 2021

El Salvador – Bitcoin is legal tender from Tuesday

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El Salvador on Tuesday became the first country in the world where bitcoin is legal tender. Proponents of the solution say it will lower commission costs for billions of dollars shipped to the country from abroad, but critics warn that it could fuel money laundering, writes the Reuters agency.

In June this year. local Congress voted the proposal reported by President Nayib Bukele. Reuters pointed out that the plan initiated by the president could save Salvadorans as much as $ 400 million a year in commissions on remittances, mostly sent from the United States.

Meanwhile, remittances from Salvadorans working abroad account for a large part of the country’s budget. Last year alone, the amount of money sent to this country by remittance amounted to nearly $ 6 billion, or 23 percent. gross domestic product, which is one of the highest indicators in the world, the Reuters agency reported.


The first of more than 200 ATMs to convert dollars into bitcoins has already been installed in El Salvador. According to polls, Salvadorans are skeptical about using bitcoin and wary of the volatility of cryptocurrency values. Some opponents took to the streets of San Salvador to show their opposition to bitcoin and the president’s policies.

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Protest in San SalvadorEPA / Rodrigo Sura

Bitcoin – course

Bitcoin, which reached a record level of 65,000 in April. dollars, in June fell to the level of 28.8 thousand. dollars. Currently, you have to pay over 50,000 for bitcoin. dollars.

Bitcoin quotes in the last three monthsstooq.pl

Some analysts fear that the decision to make bitcoin legal tender alongside the US dollar may thwart the Salvadoran government’s plans for more than $ 1 billion in IMF support. In addition, as the Reuters agency recalled, after the approval of the new regulations, the Moody’s rating agency lowered the creditworthiness of El Salvador.

Main photo source: Reuters

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