Bitcoin is now legal tender in El Salvador. Some highlights of the Bitcoin Law:
Merchants must accept Bitcoin, provided they have the technology to do so.
The government will assist with technology training programs.
Software wallets can instantly convert between Bitcoin and USD to minimize volatility.
El Salvador (population 7 million) formerly used the US Dollar as currency. El Salvador's small developing economy is ideal for attempting a shift to a peer-to-peer payment network. Several use cases for Bitcoin had already been established in the country. Remittances are a significant percentage of GDP and Bitcoin prevents the large surcharge by providers like Western Union. The community of El Zonte, also known as "Bitcoin Beach", is a small surf community that has used Bitcoin unofficially since 2019. Bitcoin's use in El Zonte was accelerated by the Covid pandemic.
El Salvador's New Legal Tender
History: El Salvador's Currency
El Salvador's adoption of Bitcoin as legal tender could give the nation more control over their own technology infrastructure, while reducing reliance on policies set by the US, World Bank and IMF. Learn more about Bitcoin Beach's successes and challenges during the Covid pandemic:
Lawmakers from the following countries have also expressed interest in exploring Bitcoin as legal tender: Argentina, Brazil, Mexico, Panama, Paraguay, Tanzania and Tonga. It is likely that developing economies will be the early risk-takers to adopt Bitcoin as they have the most to gain from decentralized leader-less money.