El Salvador goes down in history as the first country to legalize bitcoin

Everyone will know bitcoin, the virtual currency that has been talking about itself for years above all thanks to the great growth of its value in a short time. What less they knew is that this currency is not recognized in any country in the world. This was until a few days ago, or before El Salvador officially legalized bitcoin.

The government of El Salvador, chaired by Nayib Bukele, has approved a bill that aims to legalize the popular virtual currency. The legalization of bitcoin means that the virtual currency will be usable in an official way on Salvadoran territory: this will mean that goods and services can be paid in bitcoin, as well as the taxes can be collected in bitcoins.

The law also provides that the state of El Salvador then undertakes to guarantee its residents the automatic and instant conversion between bitcoin and dollars, so that anyone receives payments in bitcoins can then immediately convert the money into dollars. The dollar is in fact the official currency of El Salvador. In these two considerations lie the main reasons that pushed the Salvadoran government to this bill.

The country's economy is in fact extremely dependent on the transactions carried out by the Salvadoran emigrants in favor of family members residing in their homeland. This involves substantial fees for commissions associated with transactions: by introducing bitcoin and using this currency to carry out these transactions, commission costs will be much less on the shoulders of the citizens of El Salvador.

The other reason behind the choice of El Salvador consists in freeing itself from the decisions of the US central bank : having the dollar as its official currency, adopted with hope, then not materialized, to attract investments from the United States, El Salvador is not autonomous in terms of monetary policy. With the adoption of bitcoin, it therefore intends to acquire greater autonomy in this sense.