Two days after his announcement of his plans to render Bitcoin (BTC) as legal tender, the president of El Salvador, Nayib Bukele, quickly got his wishes as the Salvadoran Legislative Assembly passes his proposed bill. This makes El Salvador the very first country in history to identify BTC as legal tender.
Bukele announced earlier today through his Twitter profile that he had now incorporated the “Bitcoin Law” into his present legislature. Notably, the new law does not only recognize BTC as legal tender, but it also encourages El Salvador merchants to start accepting BTC as a viable payment option. According to the El Salvador President, the Bitcoin Law would go into effect immediately, allotting three months for the whole infrastructure to be incorporated in the country’s financial ecosystem.
🇸🇻 — WATCH: El Salvador congress breaks into applause after a bill singed by President @nayibbukele officially passes, becoming the first country in the world to make #bitcoin a legal tender. pic.twitter.com/IZM7lCywmq
— Belaaz (@TheBelaaz) June 9, 2021
Bukele then revealed that he plans to meet with the International Monetary Fund, or IMF, soon in his efforts to make BTC adoption even more predominant in the country. On top of that, the El Salvador government also announced that it plans to release a Bitcoin wallet, which wouldn’t be mandatory. All in all, El Salvador intends to hold about $150 million worth of BTC in a particular trust fund specifically for its development bank to mitigate merchant risks.
Chris Guevara, Congressman present at the particular assembly, believes that Bukele’s Bitcoin Law is perhaps the most relevant component in the session that they have contemplated. That speaks a lot, considering that the assembly also tackled several significant economic issues, including the country’s 2021 fiscal year budget.