On September 7, 2021, the state of El Salvador issued a statement recognizing Bitcoin as an official tender. Now, all businesses, institutions, and small businesses in the country are required to accept payment in cryptocurrency if an individual wishes so. Also, the U.S. dollar is in the country, however, because El Salvador does not have its currency, making Bitcoin an official tender is a pragmatic decision. So, there are no risks of devaluation of the national money, but there is a chance to make significant profits with the legalization of Bitcoin at the official level.
The expected result of Bitcoin recognition
The changes are already noticeable for the country. As more than 1.5 million Salvadorans work abroad (in the US), they regularly have to transfer money back home. The SWIFT banking system charges a large fee, and the transfer takes several days. In contrast, there is a transaction to a Bitcoin cryptocurrency wallet. Such a transfer can take from five minutes to two-three hours, depending on the amount transferred and the number of network confirmations. At the same time, no additional commission is charged, because Salvadorans pay taxes already in the country, buying goods and services.
So, only in 2020, the country's budget was replenished by 400 million dollars. This indicator is the highest in the world and represents 23% of the annual GDP of El Salvador. Given that the money transfer can be made practically free of charge, this value is expected to grow further.
At the time of the decision, 400 Bitcoins were purchased in El Salvador. It provoked a local jump of 4% in the exchange rate. However, not all residents of the country support the innovation. As a rule, these are people of the middle and older generation. One of the critics' arguments of the decision is that it is better to send SWIFT transfers with a 10-15% commission than to trust an unfamiliar system. Also, it is assumed that in El Salvador, in this way, the plans are to introduce its cryptocurrency, Stablecoin. Already, exchange offices have been established in the country, where citizens can exchange Bitcoins for dollars.
Where to exchange Bitcoin online
CryptoExchanger is an online cryptocurrency exchanger with high volumes of coins. It provides an opportunity to make transactions at a favorable rate, as the market price is fixed at the time of creating the application. In this case, after the application activation, the price remains the same until the moment of transfer. Cryptocurrency pairs are provided, which are the most popular among holders of coins. So, for example, you can make an online exchange of Bitcoin to Tether, Ethereum to Litecoin, Dash to Bitcoin, etc. Transaction time in automatic mode is 5-30 minutes.