Iran Press/America: According to Aljazeera, El Salvador has approved a proposal from President Nayib Bukele for a law to classify Bitcoin as legal tender, making the Central American nation the first in the world to do so.
Many lawmakers voted in favor of the initiative late on Tuesday to create a law that will formally embrace the cryptocurrency, despite concern about the potential effect on El Salvador’s program with the International Monetary Fund.
“The Bitcoin Law has just been approved by a qualified majority” in the legislative assembly; President Nayib Bukele tweeted after the vote in the assembly.
El Salvador’s dollarised economy relies heavily on money sent back from citizens working abroad.
World Bank data showed remittances to the country made up nearly $6bn, about a fifth of GDP, in 2019, one of the highest ratios in the world.
Experts have said the move to Bitcoin could complicate talks with the IMF, where El Salvador is seeking a more than $1bn program.
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