Parliament in El Salvador, Central America, has passed a bill to make Bitcoin, a representative crypto asset, a legal tender.
According to Western media, Bitcoin is the first legal tender in the world, but there are concerns due to the volatile prices.
According to several Western media, the parliament of El Salvador in Central America passed a bill to make Bitcoin, a representative crypto asset, a legal tender by the 9th.
Since Bitcoin is the first legal tender in the world, it will be available to individuals and businesses for various payments such as shopping and tax payment.
The law will take effect after 90 days, and the traditional fiat currency, the US dollar, will continue to be used.
President Bukele posted on Twitter that "70% of the population in El Salvador does not have a bank account," providing payment methods through smartphones and other means to people who cannot use traditional financial services, and remittances from overseas. It emphasizes the aim of improving the convenience of the people by reducing the fees.
On the other hand, the price of Bitcoin fluctuates sharply and it is difficult for the government and central banks to manage it, so there are concerns from experts about whether it can play a stable role as a currency.