Bitcoin jumps after El Salvador says it'll start accepting it as legal tender
June 10, 2021. Summarized by summa-bot.
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<<enter caption here>> on December 7, 2017 in London, England.
Bitcoin's value shot up after El Salvador became the world's first country to accept it as legal tender.
Hong Kong (CNN Business)Bitcoin's value shot up after El Salvador became the world's first country to accept it as legal tender.
Salvadorian lawmakers made history on Wednesday by approving a proposal from President Nayib Bukele that would allow bitcoin (XBT) to be used as a form of legal tender in the country, alongside the US dollar.
The law states that "all economic agents shall accept bitcoin as a form of payment when it is offered by the purchaser of a good or service. " It also says that tax payments can now be made in bitcoin.
Prior to the vote in El Salvador, Bukele had said in a tweet that using bitcoin as legal tender would promote financial inclusion, tourism, innovation and economic development.
El Salvador is the smallest country in Central America, and while it was quick to contain the coronavirus pandemic, its economy was hit hard last year, according to the World Bank.
That could help people in poorer communities — such as many in El Salvador but also in minority communities in the United States — gain increased access to their finances.
Last month, for example, bitcoin fell after Musk appeared to suggest that his automaker may have dumped its holdings of the virtual currency.