Why in News ?
El Salvador has become the first country to formally adopt bitcoin as legal tender. Proposal to legalise cryptocurrency was put forward by President Nayib Bukele which was later approved by Congress.
- Even though there was concern regarding potential impact of legalising cryptocurrency on El Salvador’s program of $1 billion with International Monetary Fund, proposal was passed with majority of 62 out of 84 possible votes.
- Bitcoin was approved considering its potential to help Salvadorans living abroad to send remittances back home. U.S. dollar will also continue as legal tender in country.
- It will bring financial inclusion, investment, innovation, tourism and economic development in El Salvador.