Bitcoin Approved as First Legal Tender in El Salvador... "A Historic Day" (Comprehensive)

President Bukele's Approval Proposal Passed by Congress
"Helps Create Jobs and Improve Financial Access"
Uncertain if It Will Function Properly as a Payment Method

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Cryptocurrency Bitcoin has been approved as legal tender for the first time in the world in El Salvador.

On the 9th (local time), according to major foreign media such as CNBC, El Salvador, a Central and South American country, became the first country to officially approve Bitcoin as legal tender.

The El Salvador Congress passed the bill approving Bitcoin as legal tender, submitted by President Nayib Bukele, with a majority vote (62 out of 84 votes) on the 5th. President Bukele posted on his Twitter that day, calling it a "historic day."

He explained, "In the short term, it will help create jobs and provide financial access to those outside the formal economy."

However, there are many assessments that it is uncertain whether Bitcoin will function properly as a payment method in El Salvador. About 70% of the population does not have bank accounts or credit cards, so most economic activities are conducted in cash.

The national economy is also highly dependent on funds sent home by overseas workers, which accounted for about one-fifth of the gross domestic product (GDP), approximately 6 billion dollars, as of 2019. In addition, chronic instability is severe due to rampant criminal groups.

As of today, the price of Bitcoin is $34,389 according to CoinMarketCap. Bitcoin surged past $64,000 in April but recently underwent a significant correction, dropping to the $31,000 range.

This content was produced with the assistance of AI translation services.