El Salvador Enacts Bitcoin Law, Ushering In New Era Of Global Monetary Inclusion

SectorFinancial Markets
CountryMiddle east

On June 9, El Salvador’s legislative assembly voted to make bitcoin legal tender throughout the country. (Photo by STANLEY ESTRADA/AFP via Getty Images)

AFP via Getty Images

On Wednesday, June 9, El Salvador’s legislative assembly made history by formally adopting bitcoin as legal tender, with nearly three-fourths of the legislature voting in favor. If the new law works as intended, it has the potential to transform El Salvador into one of the world’s most important financial centers, and to affect the way people around the globe use digital currencies.

“History!” exclaimed Salvadoran President Nayib Bukele on Twitter, after the vote took place, around 2 a.m.

Eastern Time on June 9. And, indeed, the bill is historic on a number of fronts.

How the Salvadoran bitcoin standard will work

According to the legislative text, under the new law “every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service”: a straightforward definition of what it means to be...read more...