President Bukele announces that El Salvador will adopt Bitcoin as legal tender at the Bitcoin 2021 Conference in Miami

On June 5, 2021, El Salvador announced its plan to adopt Bitcoin as legal tender. This announcement was made by President Nayib Bukele during the Bitcoin 2021 conference in Miami. The decision was part of a broader strategy to foster financial inclusion and economic growth, particularly for the many Salvadorans living abroad who send remittances back home.
 

The Salvadoran Congress moved swiftly on the proposal, and by June 9, 2021, the law was passed with a supermajority, garnering 62 out of 84 possible votes. This legislative action positioned El Salvador as the first country in the world to officially classify Bitcoin as legal currency, alongside the US dollar, which had been the nation’s official currency since 2001.
 

The law stipulated that every business must accept Bitcoin as legal tender for goods and services, unless unable to provide the technology necessary for the transaction. The government emphasized that this historic move would bring financial inclusion, investment, tourism, innovation, and economic development to the country.
 

El Salvador’s economy heavily relies on remittances, which constitute around 20% of the country’s GDP. More than two million Salvadorans live outside the country but maintain close ties with their homeland, sending back more than $4 billion each year. By adopting Bitcoin, the government aimed to make it easier and more cost-effective for citizens to send and receive these vital funds.
 

The implementation of Bitcoin as legal tender officially took place on September 7, 2021, 90 days after the publication of the law in the official gazette. This historic event was met with a mix of excitement and skepticism by the general public.