EL SALVADOR - FIRST COUNTRY IN THE WORLD TO ADOPT BITCOIN AS LEGAL TENDER

EL SALVADOR - FIRST COUNTRY IN THE WORLD TO ADOPT BITCOIN AS LEGAL TENDER

Context:

On 6th Sep 2021, El Salvador, the tiny and impoverished Central American nation became the 1st country in the world to adopt bitcoin as legal tender, allowing Salvadorans to use the cryptocurrency to buy a cup of coffee, get a haircut or even pay taxes and home loans.

Background:

• After passing the legislation in June 2020, El Salvador has been preparing to support the cryptocurrency for months.
• Last month it began installing 200 ATMs around the country to allow citizens to convert between the country’s 2 official currencies.
• It’s also launching its digital wallet called “Chivo,” which awards users $30 of free Bitcoin to encourage adoption.

Bitcoin:

• It is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
• In 2008, the cryptocurrency was invented by an unknown person or group of people using the name Satoshi Nakamoto.

El Salvador:

• It is a country in Central America.
• It is bordered on the northwest by Guatemala, on the northeast by Honduras, and on the south by the Pacific Ocean.
• El Salvador's capital and largest city are San Salvador.