Despite majority opposition from the population, the small Central American country became the first state in the world to legalize cryptocurrency transactions. Led by populist and dictatorial President Naib Bukhale, the reform aims to “revive the economy.”
The first country on the planet to legally tender for cryptocurrency was not a high-tech stronghold (such as the Netherlands, Singapore or Japan) but the Central American state of 6.5 million people, where only one in two residents subscribed to Internet service, according to Datareportal site. This decision was made by the young and dictatorial President Naib Bukhale, 40, who loved modernity more than he valued democratic rules.
From Tuesday, Bitcoin will be accepted as a means of payment through an application called Chivo, which means goat but in Salvador slang: bigger, better. Each opening of Chivo is offered a $ 30 or 0.0006 Bitcoin bonus at the current exchange rate. Currently established distributors (200 across the country) make it possible to obtain cryptocurrency in exchange for green tickets, the dollar has been the country’s currency since the fall of the gallon in 2001.
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The law was passed by the Salvador Parliament in June and has been heavily dominated by supporters of President Puigel since the legislative elections in March. The move, according to the country’s leader, will boost the country’s economy. Sebal (Economic Commission for Latin America, United Nations) seems to believe it, because it predicts 7.5% GDP growth in 2021, the second best …
Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.