El Salvador now accepts Bitcoin as legal tender. The news was shared by the country’s president Nayib Bukele on Twitter.
— Asamblea Legislativa (@AsambleaSV) June 9, 2021
The announcement followed a vote by the country’s congress, where a supermajority voted to make Bitcoin the legal tender of the Central American government. Out of 84 members of congress that took the vote, 62 of them voted in favor of the leading digital currency.
The implications of this is huge both within and outside El Salvador. Internally, it means that no business in the country can refuse payments that are made in Bitcoin. Externally, it sets an example that other countries can follow in accepting Bitcoin as a form of currency.
The news was received well by the country’s citizens and internationally. One of those who commented on the President’s tweet is Jack Mallers, the CEO of Zap, a company that offers Bitcoin payment solutions through the Lightning network.
In his comment, Mallers congratulated the people of El Salvador and called it a giant leap for humanity. He also said that he would be on CNBC Tech Check today, where he would be discussing the implications of El Salvador’s move.
The tweet also drew in Jeff Booth, a tech entrepreneur who called the country’s move incredible.
Since the news was announced, the price of Bitcoin has stabilized after yesterday’s huge selloff. Bitcoin is currently trading at $33,912.60 and is up by 2.15 percent. It has recovered most of the losses incurred in yesterday’s selloff.
It will be interesting to see how the price plays out as more people learn about El Salvador’s move.