MIAMI (AP) — El Salvador is betting that this week’s pioneering adoption of Bitcoin will spur its economy, especially one of its most crucial sources of revenue: money sent home by Salvadorans in the United States.
A fervent proponent of the cryptocurrency, President Nayib Bukele has asked the more than 2 million Salvadorans who live overseas to send their remittances in Bitcoin, arguing it will be cheaper than transferring dollars. He also says it will stimulate foreign investment.
No central bank or other institution has any say in its value, which is set entirely by people trading Bitcoin. That independence and secrecy have made it a favorite of people suspicious of governments, as well as criminals trying to hide their transactions.
Other countries have dabbled in cryptocurrencies, but none has gone so far as El Salvador.
Starting Tuesday, all businesses will have to accept payments in Bitcoin, except those lacking the technology to do so, according to a law approved by the congress, which is controlled by Bukele’s New Ideas party.
The U.S. dollar, however, will remain the country’s main currency and no one will be forced to pay in Bitcoin.
TOMORROW - The first nation will adopt #Bitcoin as legal currency. pic.twitter.com/8cjn3lYkeD
— Bitcoin Magazine (@BitcoinMagazine) September 6, 2021
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