Sarah Tran
Independent Analyst
- El Salvador recently became the first country to adopt Bitcoin as legal tender in the country.
- The government is also planning to leverage its geothermal potential to mine BTC.
- The government is now debating whether Bitcoin should be used to pay employee salaries in the country.
Shortly following the adoption of the leading cryptocurrency as legal tender in the country, El Salvador is discussing whether companies should pay salaries in Bitcoin.
Bitcoin becomes legal tender in the coming months
Just a week ago, El Salvador became the first country in the world to adopt Bitcoin as legal tender. Congress approved President Nayib Bukele’s proposal to embrace the cryptocurrency, and history was made.
The country does not have its own currency and uses the US dollar as legal tender. Bukele highlighted that the use of Bitcoin would help Salvadorans living abroad to send remittances home.
Currently, the new law would force firms to accept the bellwether cryptocurrency when offered as payment for goods and services. Its use as legal tender will begin 90 days after the law was created, with the Bitcoin-dollar exchange rate set by the market.
The US dollar will still be used as the reference currency and legal tender in the country. Citizens in the country would also have the option to pay tax contributions in the flagship digital currency.
Now, El Salvador’s Minister of Labor & Social Welfare, Rolando Castro, says that the government is considering whether companies should pay employee salaries in the leading cryptocurrency.
The El Salvador 2001 Monetary Integration Law states that all salaries are payable in dollars since the country replaced the Salvadoran colon with the greenback during Francisco Flores’s presidency.
Although details regarding the new initiative remain unclear, the Ministry of Economy and the Ministry of Finance are working together with the Ministry of Labor & Social Welfare on this development.
According to Castro, the decision of whether to pay salaries in Bitcoin will come after the digital asset assumes the new status as legal tender in the coming months.
El Salvador’s adoption of the leading cryptocurrency continues to advance rapidly as the government is also planning to mine Bitcoin with energy from volcanoes. The president called on the state-backed geothermal power company to make facilities available for BTC miners.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.