El Salvador has become the first country in the world to accept bitcoin as legal tender. This is huge news for the Cryptocurrency market and has rallied the market.
President Nayib Bukele announced late on Monday evening that his government has purchased another 200 bitcoins ahead of the South American countries formal adoption of the currency. El Salvador now holds 400 bitcoins, which are worth nearly $21 million at the current trading levels.
The law designating bitcoin as legal tender says that all “economic agents” shall accept the cryptocurrency as a form of payment. It also says that tax payments can be made in bitcoin.
Salvadorans will also be able to download the “Chivo Wallet”, an application created by the government which will deliver $30 worth of bitcoin to people to promote its use.
Bukele, a right-wing populist who rose to power in 2019, announced the plan to start using bitcoin in June. He said back then that they had partnered with digital finance company Strike to establish the logistics of the decision.