The country of El Salvador is planning to make Bitcoin its national currency along with the US dollar. To implement the momentous financial move, the government has purchased 400 Bitcoins, worth more than 21 million dollars. Nayib Bukele, the President of Ek Salvador, has proposed the use of Bitcoin as an unrestricted legal and financial tender that will liberate the economy by allowing unlimited transactions. According to the press release reports of the state, the authority shall grant tax incentives and permanent residency to citizens and corporations who use the Chivo cryptocurrency wallet to conduct Bitcoin transactions. The state will also offer Bitcoin worth US$ 30 to Chivo wallet holders.
Michael Saylor and several eminent Bitcoin experts of El Salvador are urging citizens to adopt Bitcoin. However, citizens of El Salvador do not seem to be enthusiastic about the national adoption of Bitcoin for fear of fraud and money laundering. They are taking to the streets to protest against the adoption of Bitcoin. However, the authorities are determined to make use of Bitcoin to promote the digital economy of El Salvador.
The country currently holds 400 Bitcoin. It will soon become the legal tender of the US. The price of Bitcoin temporarily surged by more than 1.49% to $52, 680 or more. The president of El Salvador has declared that brokers of the country will buy more Bitcoin in the coming months to work on the legalization of Bitcoin in the country. The legalization of Bitcoin shall be monitored by both detractors and enthusiasts of cryptocurrency. If the legal status of Bitcoin succeeds in El Salvador, then other countries shall also adopt Bitcoin as their national currency.
As of now, business organizations of El Salvador will be empowered to accept Bitcoin as payment in exchange for its goods and services. The government will also accept tax payments in Bitcoin. The legalization of Bitcoin will reduce the expense of international transactions and rope in more people into the financial system of the country. The authorities have also begun to work on the installation of Bitcoin ATMs in the country to allow citizens to withdraw cash by converting cryptocurrency into US dollars.