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How Crypto Helped El Salvador Make History

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If you stay up to date with crypto news, you might know that El Salvador has taken over headlines and emerged as a catalyst in the crypto world. But just in case you missed it, this Central American country is making history by becoming the first country in the world to accept Bitcoin as legal tender.

The cryptocurrency agreement received a majority vote on June 8th, 2021. After President Nayib Bukele proposed to establish Bitcoin as a legal currency, Congress approved with 62 votes out of a possible 84, a majority of over 73%. The president stated that they have partnered with Strike, a company offering instant money transfers, to write up a plan and create logistics. Overall, the country is making noise with this trailblazing decision that intends to help the citizens of El Salvador.

The Reasoning Behind the Vote

It is suggested that around 70% of El Salvadorans do not have access to traditional financial institutions and services. With cryptocurrencies helping the unbanked and underbanked, the adoption of Bitcoin is seen as a solution for these communities.

Aside from aiding the underbanked and providing newfound access to financial services, President Bukele hopes that this initiative will also provide jobs to the country’s residents.

Bitcoin as Legal Tender

In just under 90 days, Bitcoin will join the US Dollar as a form of currency in El Salvador. The new mandate will now require all businesses to accept this kind of currency for both goods and services.

El Salvadorians will also be able to pay their taxes with Bitcoin. To further help the country’s inhabitants, the government will offer to buy Bitcoin from residents if they prefer to receive US dollars instead.

The passing of the President’s bill has caused quite a commotion throughout the world. One positive aspect of this initiative is the President’s promise to offer permanent residence to entrepreneurs in the crypto community. Bitcoin enthusiasts were enthralled by the idea and have been vocal about plans to move to the country.

A Revolutionary Mining Process

With Bitcoin recently under fire for its environmental impact, El Salvador has announced their clean and sustainable method of mining the cryptocurrency. The President has announced that they will utilize geothermal energy from the country’s volcanoes to mine Bitcoin. The process involves water from under the volcano turning into steam, which then rotates turbines and produces energy. After this proposition came forward, a new geothermal well was drilled soon after.

To celebrate the passing of this law, Binance is offering a promotion for any new Binance users from El Salvador. Until June 20th, 2021, new users from El Salvador will receive $10 in Bitcoin once they register, verify, and complete the account, after which they can purchase $50 worth of the cryptocurrency.

El Salvador is making waves for being the first country in the world to adopt the popular cryptocurrency as a form of legal currency. According to Forbes, Tanzania and Panama are already considering joining the movement of Bitcoin adoption. Overall, what happens next in the crypto world is unpredictable, but El Salvador’s decision begs the question: will we see more countries adopting Bitcoin as legal tender? And more importantly, which countries will follow?

June 30, 2021