Earlier this week, El Salvador announce its plans to make Bitcoin (BTC/USD) a legal tender in the country. Now, it seems the country’s congress has made this plan a reality, as Wikipedia listed the cryptocurrency as one of its official currencies.
El Salvador became the first country to take Bitcoin as a legal tender. However, the law won’t come into effect until after 90 days. Yet, that hasn’t stopped El Salvador’s government to put certain things in place to make sure the cryptocurrency is globally recognized as one of its official currencies.
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When the law is enacted, it will enable merchants and the general public to trade, transfer, and use Bitcoin exactly like they would use the US dollars, the country’s official currency.
Now both the dollars and Bitcoin will be treated in the same legal space, according to the El Salvadorian government.
Bitcoin still thriving despite challenges
Bitcoin has been receiving a lot of backlash for the past several weeks. The most valuable cryptocurrency in the world has been the subject of a debate about its extreme use of fossil fuel when mining. This is in addition to the ban the Chinese government placed on the token last week. A combination of these factors and others have contributed to the dwindling price of the crypto asset.
But these issues have not deterred it from being recognized and adopted in several quarters. The recent move by the El Salvadorian government will increase the demand for Bitcoin, as well as enable crypto newbies to invest in the crypto asset.
Additionally, the country has stated that it will grant citizenship to anyone who invests in its economy using Bitcoin.
Law to be enacted within 90 days
El Salvador became the first country to accept Bitcoin as a legal tender. It will take 90 days for the law to be enacted, which will allow merchants and the general population to prepare.
Besides, the country will grant citizenship to anyone that invests Bitcoin into the nation’s economy. Paraguay and Panama are also working on projects that will enable the embrace of Bitcoin as well as other cryptocurrencies.
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