{"id":111989,"date":"2021-06-12T17:58:10","date_gmt":"2021-06-12T12:28:10","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=111989"},"modified":"2021-09-08T17:41:27","modified_gmt":"2021-09-08T12:11:27","slug":"el-salvador-is-planning-to-make-bitcoin-a-legal-currency","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/el-salvador-is-planning-to-make-bitcoin-a-legal-currency\/","title":{"rendered":"El Salvador is planning to make &#8220;Bitcoin a legal currency&#8221;"},"content":{"rendered":"\n<h5><strong>What is the News?<\/strong><\/h5>\n<p>El Salvador is planning to make Bitcoin a legal currency. If made, then El Salvador will be the first country in the world to officially classify Bitcoin as a legal currency.<\/p>\n<p><strong>What did El Salvador do?<\/strong><\/p>\n<ul>\n<li><strong>El Salvador <\/strong>is planning to make Bitcoin a legal currency. This means that the bitcoin must be accepted when offered as payment for goods and services. The tax contributors can also pay through bitcoin.<\/li>\n<li><strong>The US dollar<\/strong> will continue to circulate alongside Bitcoin as the national currency in El Salvador.<\/li>\n<\/ul>\n<p><strong>Note:<\/strong><\/p>\n<ul>\n<li><strong>El Salvador <\/strong>has not had its own monetary policy since 2001 when it made the US dollar the official currency.<\/li>\n<li><strong>Along with Ecuador and Panama, <\/strong>El Salvador is currently among three nations in Latin America to have a \u2018dollarized economy.<\/li>\n<\/ul>\n<p><strong><a class=\"seoquake-params-link\" href=\"https:\/\/forumias.com\/blog\/bitcoins-in-india-an-overview\/\" rel=\"bd99caf1 x_url\"> Read Also :-Bitcoins in India: An Overview<\/a><\/strong><\/p>\n<h5><strong>Why did El Salvador make Bitcoin a legal currency?<\/strong><\/h5>\n<ul>\n<li><strong>Fewer Remittances: <\/strong>The remittances in El Salvador account for roughly 20% of the nation\u2019s gross domestic product. However, a large amount of this money gets lost in intermediaries fees. Hence, it is expected that Bitcoin adoption may make remittances quicker and cheaper.<\/li>\n<li><strong>More Independence: <\/strong>El Salvador is a dollarized economy. So, the fiscal and monetary decisions of the U.S. government and Federal Reserve have a tremendous impact on El Salvador. Hence, adopting Bitcoin could give the nation more independence.<\/li>\n<li><strong>Financial Inclusion: <\/strong>Nearly 70% of El Salvador&#8217;s population does not have a bank account and relies on the informal economy. So, Bitcoin will help increase financial inclusion in El Salvador.<\/li>\n<\/ul>\n<h5><strong>Concerns against this move:<\/strong><\/h5>\n<ul>\n<li><strong>Legalizing bitcoin <\/strong>in the absence of a central regulating authority will have the potential for fraud and money laundering, high energy costs and extreme volatility.<\/li>\n<\/ul>\n<p><strong>Governments on Cryptocurrencies:<\/strong><\/p>\n<ul>\n<li><strong>An increase in demand for cryptocurrencies <\/strong>has grabbed the attention of governments around the world. A few countries are even looking to launch their own virtual Cryptocurrencies called <a href=\"https:\/\/forumias.com\/blog\/introducing-national-digital-currency-in-india-explained-pointwise\/#What_is_the_CBDC_or_National_Digital_currency\" target=\"_blank\" rel=\"noopener\">central bank digital currencies(CBDCs)<\/a>.\n<ul>\n<li>For example, <a href=\"https:\/\/forumias.com\/blog\/china-tests-state-run-digital-currency-in-4-cities-amid-pandemic\/\"><strong>China<\/strong> has started a trial run of their digital currency<\/a><strong>\u00a0e- RMB\u00a0<\/strong>amid a pandemic<\/li>\n<\/ul>\n<\/li>\n<li><strong>In India, <\/strong>the Government has floated the <strong>Cryptocurrency and Regulation of Official Digital Currency Bill, 2021<\/strong>. The bill prohibits all private cryptocurrencies and lays down the regulatory framework for the launch of an \u201c<a href=\"https:\/\/forumias.com\/blog\/introducing-national-digital-currency-in-india-explained-pointwise\/\" target=\"_blank\" rel=\"noopener\">official digital currency<\/a>\u201d.<\/li>\n<\/ul>\n<p><strong>Read Also :-<a class=\"seoquake-params-link\" href=\"https:\/\/forumias.com\/blog\/el-salvador-becomes-malaria-free-country\/\" rel=\"37ceac6d x_url\">El Salvador becomes &#8220;Malaria-free Country&#8221;<\/a><\/strong><\/p>\n<h5><strong>About Bitcoin:<\/strong><\/h5>\n<ul>\n<li><strong><a href=\"https:\/\/forumias.com\/blog\/bitcoins-in-india-an-overview\/\" target=\"_blank\" rel=\"noopener\">Bitcoin<\/a> <\/strong>is a type of Cryptocurrency that enables instant payments to anyone.<\/li>\n<li><strong>Introduced in: <\/strong>Bitcoin was introduced in 2009. It is based on an open-source protocol and is not issued by any central authority.<\/li>\n<li><strong>Origin: <\/strong>The origin of Bitcoin is unclear, as is who founded it. A person, or a group of people, who went by the identity of Satoshi Nakamoto are said to have conceptualised an accounting system in the aftermath of the 2008 financial crisis.<\/li>\n<\/ul>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/el-salvador-bitcoin-president-nayib-7348198\/\"><strong>Indian Express<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the News? El Salvador is planning to make Bitcoin a legal currency. If made, then El Salvador will be the first country in the world to officially classify Bitcoin as a legal currency. What did El Salvador do? El Salvador is planning to make Bitcoin a legal currency. This means that the bitcoin&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/el-salvador-is-planning-to-make-bitcoin-a-legal-currency\/\">Continue reading <span class=\"screen-reader-text\">El Salvador is planning to make &#8220;Bitcoin a legal currency&#8221;<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,1351,1310,164,9],"tags":[1333,1439],"class_list":["post-111989","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-daily-news","category-daily-news-updates","category-international-relations-daily-factly-articles","category-public","tag-ir_0","tag-ir_4","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704913888},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/111989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=111989"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/111989\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=111989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=111989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=111989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}