El Salvador has become the first country to formally adopt the world’s most popular cryptocurrency bitcoin as legal tender after Congress approved President Nayib Bukele’s proposal to embrace it.
With 62 out of 84 possible votes, a majority of MPs voted in favor of the initiative to create a law that will formally adopt the digital currency, despite concern about the possible impact on the country’s program with the IMF.
President Bukele has touted the use of bitcoin for its potential to help his country’s nationals living abroad to send remittances back home, while saying the USD will also continue as legal tender.
Bukele said in a tweet shortly before the vote in Congress: “It will bring financial inclusion, investment, tourism, innovation and economic development for our country.”
“The government will guarantee the convertibility to the exact value in dollars at the moment of each transaction,” he added.