Back in June, the federal government of El Salvador proposed and handed a legislation which might see bitcoin turn into authorized tender within the nation. The legislation has since come into impact on Tuesday the place the nation’s authorities additionally bought 400 bitcoins which was valued at round $20.9 million.

With this new legislation coming into impact, it basically makes El Salvador the primary nation on this planet to acknowledge bitcoin as authorized tender. For these unfamiliar, authorized tender signifies that it is a type of cash that the legislation acknowledges as a type of fee, similar to precise money. Why that is essential is as a result of previous to this, bitcoin and different types of cryptocurrency have been solely accepted by some locations.

By making it formally acknowledged as authorized tender, it signifies that these dwelling within the nation will pay for items and providers utilizing bitcoin. However, whereas it’s an fascinating thought, some have questioned the federal government’s determination. This is as a result of cryptocurrency like bitcoin has been identified to fluctuate wildly.

This signifies that the 400 bitcoins the nation bought won’t be as worthwhile tomorrow as it’s at this time. Also, a survey carried out by the Central American University discovered that 70% off Salvadorans disagreed with the choice, with many expressing that they weren’t certain on use the digital foreign money.

Filed in General. Read extra about Bitcoin, Cryptocurrency and Legal. Source: cnbc