San Salvador (AFP)
El Salvador's Congress on Wednesday approved a law converting bitcoin into legal tender, an unprecedented move in the world championed by President Nayib Bukele to boost the growth of the Central American country.
"The object of this law is the regularization of bitcoin as legal tender, unrestricted with discharge, unlimited in any transaction", stipulates the first article of this law, which must be submitted for ratification to the Head of State.
Last Saturday, Mr Bukele announced his intention to legalize bitcoin, with the aim of generating jobs and "enabling financial inclusion for thousands of people who are outside the legal economy."
He explained that "70% of the population did not have a bank account and worked in the informal economy".
In the dollarized economy of El Salvador, Salvadorians' remittances from abroad are an important support and equivalent to 22% of the gross domestic product (GDP).
Bitcoin is a decentralized asset with no direct connection to the real economy, which is based on blockchain technologies.
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This cryptocurrency remains very volatile but the growing interest of institutions and companies considered stable contributes to making it gradually enter the mores, beyond the insiders.
© 2021 AFP