In a groundbreaking decision, El Salvador has become the first country in the world to accept cryptocurrency, Bitcoin, as legal tender. The country’s congress recently voted in favor of the notion, which was proposed by President Nayib Bukele. Bukele urged for this move under the pretense that it would aid to promote “financial inclusion,” investment and economic development.
According to The Guardian, “The cryptocurrency’s use as legal tender – alongside the US dollar – will go into law in 90 days and the bitcoin/dollar exchange rate will be set by the market.”
“This will generate jobs and help provide financial inclusion to thousands outside the formal economy, and in the medium and long term we hope that this small decision can help us push humanity at least a tiny bit into the right direction,” Bukele explained.
Despite Bukele’s optimism, many are not convinced the bitcoin will achieve what he says it will. Father José María Tojeira, director of the Human Rights Institute at the University of Central America, said that very few Salvadorans even have the means to access bitcoin.
“The decision is rather incomprehensible. It seems more about making a show – which is a characteristic of this government: lots of propaganda, but few structural changes to help the impoverished population,” he shared. Many share the same sentiment. Nonetheless, it will be interesting to see how bitcoin ends up playing its role in El Salvador.