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Why is bitcoin up? El Salvador becomes the first country to make it legal tender

El Salvador’s President Nayib Bukele called the passage of the law historic.

Why is bitcoin up? El Salvador becomes the first country to make it legal tender
[Source Photo: rawpixel]
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Another day, another big swing for bitcoin. After falling as much as 10% yesterday, bitcoin is up 5% in trading as of the time of this writing. So what’s the cause for today’s jump?

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As CNBC reports, El Salvador’s Congress voted yesterday to become the first country in the world to adopt bitcoin as legal tender. The vote passed by a supermajority, with 62 voting for the legalization of bitcoin as a national tender and 22 voting against it.

The legislation that was passed explains, “The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.”

As a result, prices of goods and services in the country can now be shown in bitcoin. Also, El Salvador’s government will now allow tax bills to be paid in the cryptocurrency.

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Will other countries follow suit? That’s impossible to predict, but it’s unlikely we’ll see a wave of countries following El Salvador—at least any time soon.

Shortly after the passage of the bill, El Salvador’s President Nayib Bukele tweeted about its ratification, calling the law historic.

About the author

Michael Grothaus is a novelist, journalist, and former screenwriter. His debut novel EPIPHANY JONES is out now from Orenda Books. You can read more about him at MichaelGrothaus.com

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