El Salvador has become the first country in the world to legalize cryptocurrency. The central American nation confirmed that Bitcoin will now be a legal tender in the country. On Monday, earlier in the week, the EL Salvador Congress voted in the majority to approve President Nayib Bukele’s daft proposal to provide Bitcoins with a legal sanction.
Commenting on the development, the president said “With 62 votes, the legislative plenary session approves the #LeyBitcoin with which El Salvador adopts the #Bitcoin as legal currency.”
In a tweet, defending the decision, President Bukele also said that legalizing Bitcoins will bring “financial inclusion, investment, tourism, innovation and economic development for our country.”
Following the approval from congress Bitcoin will start becoming a legal tender just like other fiat currencies, in the coming 90 days. The news of legalization broke out at the recently held Bitcoin conference where a message from the president confirming the news was played.
The president says that this decision will provide that much-needed boost to the country’s dilapidated economy. He said that even if 1% of the Bitcoin were invested in the country, their GDP would grow by at least 25%. He also said that in the short term legalizing Bitcoin will also help to create more jobs in the country.
“In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy and in the medium and long term we hope that this small decision can help us push humanity at least a tiny bit into the right direction,” the president said.
