Beautiful Virgin Islands

Tuesday, Jul 22, 2025

El Salvador Becomes The First Country In The World To Adopt Bitcoin

El Salvador Becomes The First Country In The World To Adopt Bitcoin

Today September 7, El Salvador’s Bitcoin Law has officially come into effect three months after its parliament passed the historic vote. The Central American nation is now the first country to recognize Bitcoin (BTC) as legal tender.

El Salvador President Nayib Bukele tweeted:

“3 minutos para hacer historia — In 3 minutes, we make history.”

The internet money that started in a cryptography mailing list is now officially recognized by a nation-state as lawful monetary good, being put in the same national status as the dollar in El Salvador. Starting today, any Salvadoran will have the legal option to use bitcoin instead of dollars, increasing their sovereignty over their finances and the financial certainty over their savings.

Stimulus to the economy

The use of bitcoin seeks to encourage the economy that, since its dollarization in 2001, has been stagnant with an average growth of between 2 and 4%. In 2020 it contracted 7.9% due to the covid-19 pandemic. It is projected that this year it will grow over 9%.

The daring measure, according to the government, will contribute to the banking of the unbanked population and will prevent the loss of some 400 million dollars in commissions for remittances that Salvadorans send from abroad through financial entities.

Diaspora shipments represent 22% of GDP. “All the eyes of the world will be on El Salvador,” said the president.

The Bukele government, which has a large majority in Parliament, set aside $203 million from the budget for its plan. This amount finances the automatic convertibility of bitcoin to dollar, with an exchange rate “established by the market”.

The law obliges “every economic agent” to “accept bitcoin as a form of payment when it is offered to him by whoever acquires a good or service.”

The government clarified that if the commercial establishment does not want to receive bitcoins in its account, the “Chivo” application has the option to immediately convert the amount to its equivalent in dollars at the time of the transaction.

“Nobody is obliged to use it, so it must be remembered that the dollar is the reference currency for prices, wages and the country’s accounting records,” the government has clarified.

What this Central American country of 6.6 million inhabitants is seeking, according to Bukele, is “to break with the paradigms of the past” because “El Salvador has the right to advance towards the first world.”

The government yesterday announced that they had bought the first 200 BTC as a country, which then followed by another purchase of 200, now total of 400 BTC.

While the move marks a world-first, going live didn’t go exactly as smoothly as planned.

Bukele tweeted on Monday morning, however, that the Chivo digital wallet the government had set up for citizens to use had been temporarily disabled. “The system is offline while the capacity of the servers is being increased,” Bukele tweeted, while asking for “a little bit of patience.”

A popular president

A recent survey by the Central American University (UCA) revealed that seven out of 10 Salvadorans indicated that they “disagree or strongly disagree” with the use of bitcoin and that they preferred in dollars. Although the popularity of the ruler exceeds 80%, according to the same university.

“The president maintains popularity because the people for whom the government, which are the masses, have not yet been affected by the measures he has taken,” explained Domingo, the director of the communications school of the private Technological University (UTEC). Alfaro.

Bukele, a 40-year-old millennial, who often appears in public wearing an inverted cap and interacts with influencers on social media, has capitalized on discontent against the traditional parties Arena (right) and FMLN (ex-guerrilla, left), several of whose members are prosecuted for corruption.

Last week, a chamber of the Supreme Court appointed in May by the Congress related to Bukele, gave the green light for him to run for reelection. His current government ends in 2024.

Source: El Salvador Becomes The First Country In The World To Adopt Bitcoin – Fintechs.fi

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
×