You are currently viewing Bitcoin rises 3% after becoming legal tender in El Salvador

The price of bitcoin has grown by 3.16% more after the Parliament of El Salvador by accepting this cryptocurrency as legal tender along with the dollar, according to the Legislative Assembly. This percentage increase equals $ 34,224.

The declaration of the Central American country has meant that it becomes the first territory in the world to officially authorize the use of bitcoin for legal monetary exchanges. This legislation was supported by 62 votes out of 84 in the Assembly. Nayib Bukele, the country’s president, applauded the vote stating that it had been done “story”.

The proposal to make the use of this cryptocurrency official in the country was revealed this weekend by María Luisa Hayem, the Minister of Economy of El Salvador. The announcement was made at a world conference on bitcoin that was held in the American city of Miami.

What does the ‘Bitcoin Law’ imply in El Salvador?

BTC grew 303% in 2020 and more than 500% since the markets crash in March.

The ‘Bitcoin Law’ approved by majority states that the use of this digital currency will be “Unrestricted with liberatory and unlimited power in any transaction and to any title that natural or legal persons, public or private, want to carry out”. In this way, the use of bitcoin can be done in the same way that until now it has been done with the physical currency of the dollar in the country.

The Salvadoran newspaper La Prensa Gráfica has reported that the exchange rate between the dollar and the bitcoin will depend on the value in the market itself. However, the newspaper indicates that the dollar will continue to be used as a reference for accounting purposes.

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