Bitcoin, a popular cryptocurrency, has been officially recognized in El Salvador, Central America, along with the US dollar. (bitcoin news)
El Salvador also became the first country to adopt cryptocurrency as its official currency. The announcement comes after El Salvador passed the Bitcoin law, which was approved last June and came into force on Tuesday. The country’s president, Nietzsche Bukili, wrote on Twitter that it would go down in history to accept Bitcoin as its official currency. The day before Bitcoin was officially recognized as the official currency, El Salvador bought 400 Bitcoins, valued at around $ 20.9 million today.
Proponents of her case have been working to make the actual transcript of this statement available online. According to World Bank figures, CNBC reports that remittances from the country make up more than 24% of the country’s gross domestic product.
Citizens expected to make better access to remittances and access to financial services. El Salvador has launched a wallet app called Chivo that allows citizens to transfer money using BTC. In this wallet, citizens can register with their ID card.
Citizens who sign up for Chivo will get $ 30 worth of Bitcoin when they sign up, CNBC reports. He says a $ 150 million fund would set up to facilitate the transition from Bitcoin to the dollar, Congress passed a bill on Tuesday.
CEO of digital finance
The CEO of digital finance company Strike, which helped implement the new law. He says more than 70 percent of the country’s population does not have a bank account. Therefore, Bitcoin will become an opportunity for everyone to access the banking system by overcoming banking barriers. On the other hand, there are concerns that BTC could jeopardize economic stability and become a dangerous currency.
BTC rose to an all-time high of more than $ 60,000 last April. But fell by almost half that value last summer. The International Monetary Fund (IMF) has also warned of Bitcoin’s unsustainable impact (bitcoin news).