El Salvador, a small coastal country in South America, on June 9, 2021 became the first in the world to make Bitcoin, a digital currency, legal.
- The El Salvador Parliament approved the move by a supermajority of 62 out of 84. While there are many precedents this sets for global debate on cryptocurrency.
- El Salvador has no monetary policy of its own and hence, no local currency to protect. The country was officially ‘dollarized’ in 2001 and runs on the monetary policy of the US Federal Reserve.
- President Nayib Bukele, however, clarified that he does not believe this constitutes “de-dollarization” of the economy. He believes the dollar will continue to remain the dominant currency in the country and Bitcoin would exist side by side.
(Source: Indian Express)
