Lawmakers in El Salvador have voted to make Bitcoin legal tender in a world first for the cryptocurrency.
El Salvador’s President Nayib Bukele hailed the vote, saying on Twitter that history had been made.
The country’s Congress voted 62-22 in favour of the proposal, which will be implemented within 90 days.
Bukele announced the plan to adopt Bitcoin as an official currency in a recorded message played at the Bitcoin 2021 Conference in Miami last week.
The 39-year-old president, who has maintained approval ratings above 90 per cent and made Twitter his preferred way of communicating, characterised his proposal as an idea that could help El Salvador move forward.
Prior to the vote, the US dollar was El Salvador’s only official currency. About one quarter of El Salvador’s citizens live in the United States and last year, despite the pandemic, they sent home more than $6 billion (€4.9 billion) in remittances.
Buy is it a good idea?
Well, Initially for BitCoin, some may say Yes. Others might say” Since there is a lot of political unrest and there are lots of foreign interests trying to influence the political landscape, doesn’t it make sense for the country to switch to a currency which can’t be confiscated, censored, or arbitrarily inflated? And if El Salvador is in debt, doesn’t it make sense to opt out with bitcoin?. Then,Also, it’s extremely unlikely that Joe Biden’s administration (which was already unhappy with the government in El Salvador) will ignore the fact that a Latin American country which owes a lot of debt starts using the US dollar less than before. Bitoinization and dollarization are opposing phenomena, you can’t have more of both. As a country, you either make allies or else declare your financial independence from the rest of the world. You can’t really have both”. Source – https://bitcoin-takeover.com
One last thought on this (we have many but with so many views and opinion, it is best to leave you with this)
If El Salvador’s bitcoin experiment fails, it’s going to be bad for the currency’s reputation – So think about it a little and then leave a comment. For our part, members of the management team at KCS have personal holdings in Crypto. Yes some of us actually hold Bitcoin, and have done so for a few years, so this is now yet another factor to take into consideration on whether to continue to hold or sell.