EI Salvador has become the first country in Central America to pass the bill to accept Bitcoin as legal tender. It has been disclosed that 62 out of a total of 84 deputies in the Legislative Assembly have voted in favor of the bid. It was presented by the country’s president Nayib Bukele. The proposal was anticipated to pass as Bukele’s populist Nuevas Ideas party controls 56 of the 84 seats in the Legislative Assembly.
Bukele disclosed that nearly 70% of El Salvador’s citizens are unable to access financial services. It would make Bitcoin a way to strengthen financial inclusion. The “Bitcoin Law” goal is to standardize Bitcoin as unlimited legal tender with redeeming power. Moreover, it is unrestricted in any transaction, and to any title that public or private natural or legal persons require carrying out.
Furthermore, it has been disclosed that the status of Bitcoin as legal tender in El Salvador will become valid in 90 days. It suggests that Bitcoin will be recognized as payment for all monetary debt, including taxes. While the use of Bitcoin will be completely optional.
The firm which are offering goods and services will need to have Bitcoin as an accessible payment option. As per the bill, the state will work towards offering education and resources to make Bitcoin deals available to citizens.
Additionally, Bitcoin will join the US dollar as the two recognized currencies in El Salvador. In 2001, the country superseded its earlier Salvadoran colón currency with the US dollar. BANDESAL, the development bank of El Salvador, will provide a service for conversions between Bitcoin and the US dollar.