Key message: Nayib Bukele, President of El Salvador has announced that a law to adopt Bitcoin as a legal tender in El Salvador was approved now. The law was approved by an overwhelming majority (62 out of 84) of the legislators of El Salvador’s most powerful political body. This is the first country in the world to ever adopt Bitcoin as legal tender.
El Salvador and Bitcoin law
Nayib Bukele announced his plans at last weekend’s Bitcoin 2021 conference. In his recorded video address, he said that Bitcoin will help create jobs and provide inclusion for thousands of people outside the formal economy. He also expressed his hope that in the long run, this decision will help with moving the humanity in the right direction. He further noted that 70% of the population of El Salvador does not have a bank account.
The country will work with Strike and use the Lightning Network to reduce transaction costs.
Many other Latin American officials have also expressed support for Bitcoin. While none are in the adoption stage yet, politicians from Argentina, Brazil, Colombia, Mexico, Panama and Paraguay have posted public support for Bitcoin on social media.
It is quite possible, that President Bukele has set the stage for many countries to adopt Bitcoin as a legal tender, and this is a huge step for Bitcoin and cryptocurrencies.