El Salvador became the first country in the world to legalize the use of bitcoin cryptocurrency as a means of payment.
It is reported Reuters.
In Congress, the law was supported by 63 out of 84 possible votes, despite warnings that such a step could affect Salvador's billion-dollar program with the International Monetary Fund.
The president of El Salvador, Naib Bukele, proposed to legalize cryptocurrency. He believes that such a step will help citizens of the country living abroad to carry out transfers to their families.
The main currency of El Salvador is the dollar, and the country's economy is highly dependent on remittances of workers from abroad. So, in 2019, they accounted for a fifth of GDP, or 6 billion dollars — this is one of the largest ratios in the world.
Bukele noted that the use of bitcoin will not cause any risks for users. The law will enter into force in 90 days.
According to the president of the country, the state guarantees the conversion of cryptocurrency into the exact amount in dollars at the time of each transaction.
