El Salvador is a country in South America with an approximate population of 6,825,935 bordered on the northeast by Honduras , on the northwest by Guatemala
and the south by the Pacific Ocean and her capital city is San Salvador – Wikipedia.
And history will be made today as El Salvador adopts bitcoin as it’s legal tender
along side the US dollars. Although El Salvador isn’t a central for global finance,
however it’s adoption of bitcoin as legal tender will put her in the books as the first
ever to embrace bitcoin as a nation.
With 400 hundred bitcoins in her possession El Salvador probably has the highest
bitcoin holding of all nations in the world as the country bought bitcoins ahead of
it’s roll out, with a market value of $20 million at the current price of bitcoin making
them not just the first to adopt bitcoin but also the first to buy bitcoin as a nation.
The Implications of El Salvador’s Adoption of Bitcoin As A Legal Tender
As El Salvador adopts bitcoin as a legal tender, businesses and retailers will be
required to accept bitcoin as payment for their goods and services. Also bitcoin can
be used for tax payments by cooperation and individuals. Though the US dollars
remains the national currency for public accounting purposes and merchants who
are technologically unable to receive the e-currency, the government has installed 200 ATM all over the country to facilitate exchange of cryptocurrency for US dollars. El Salvador’s adoption of bitcoin as a legal tender will further promote crypto currencies as a transparent medium of exchange and hopefully pave the way for other countries to embrace cryptocurrencies.
With this development both bitcoin enthusiasts and critics will be watching to see how well it turns out for the South American country. Nevertheless, if this experiment is successful other countries are likely to follow El Salvador’s lead.