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Bitcoin payment is legalized in El Salvador

 

President of El Salvador, Nayib Bukele brought forth a proposal to El Salvador Congress for bitcoin payment to be accepted as a legal form of payment which was eventually passed as a law. Although, the law would be put to immediate effect from September 7th, 2021.

President Nayib Bukele had disclosed this on Thursday during a national address. The law wasn't passed to be imposed on anyone but the terms of Bitcoin payment remains optional.

The recognition of Bitcoin payment in El Salvador marks the country as the first to legalized bitcoin payment.

Bukele had stated the payment of salaries/wages will continue to be paid in dollars although specifications was not made whether it was for state or private workers or both.

Athena  Bitcoin officially stated plans were on ground to invest $1 million in the construction of 1500 cryptocurrency ATMs in El Salvador to enable the easy flow of cashing out or sending money across in Bitcoin.

President Bukele stated the law was put in place in consideration of the high cost of sending across money from abroad to people in their homeland.

He further stated, looking into the statistics of the country, many families relied greatly on remittances. World Bank Data records disclosed remittances in the country make up a total of $6 billion or a fifth of gross domestic product (GDP) in 2019.

Further statistics from United States revealed less than 1% volume of the global cross-border remittances are in cryptocurrency. 

Statistics unveiled to be the next future advancement revealed crpto would be rounding up to $500 billion in regards to global remittances. This was disclosed by Kenneth Suchoski, US payment and fintech analyst at Autonomous research.

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