El Salvador Recognizes Bitcoin As Legal Tender

El Salvador is the first country in the world to officially recognize Bitcoin as legal tender

Hey DEFI TIMES community,

September 7 was a historic day. 

On Tuesday, this week, El Salvador officially recognized Bitcoin as legal tender. It was a big moment for the whole Bitcoin community because El Salvador is the first country in history to do so!

And what happens when a country recognizes Bitcoin as legal tender? Right, it’s going to buy BTC!

Nayib Bukele announced El Salvador’s first Bitcoin purchase on Twitter:

This is not a random tweet of another guy bragging about his BTC purchase. This means that the first country IN THE WORLD has bought Bitcoin.

Think about it for a second…

El Salvador has bought 200 BTC on September 7, 2021.

But things got even wilder. Just a few hours later as Nayib Bukele tweeted that El Salvador bought another 200 BTC.

El Salvador’s Bitcoin purchase may not have pumped the price, but there’s so much more to this news than just making the Bitcoin community rich.

This is the “Hello World” of countries adopting Bitcoin!

Currently, we see two big trends of Bitcoin adoption:

  1. Companies putting Bitcoin on their balance sheet

  2. Nation-states adopting Bitcoin

While the first trend is much more established, the second one is just in its infancy. El Salvador is literally the first country to recognize Bitcoin as a legal tender. However, it has almost become clear at this point that this is only the start - and many more countries could be following very soon.

What’s super interesting to observe is how El Salvador’s Bitcoin adoption will benefit the country in the long run.

When the first publicly listed company (MicroStrategy) started to buy Bitcoin, it had a positive impact on its stock performance. While Bitcoin was exploding, MicroStrategy stock increased as well.

As the public saw the positive impact of Bitcoin, more and more companies started to buy Bitcoin… and suddenly a network effect evolved!

We could see the same pattern with countries adopting Bitcoin. Other developing nations (Panama, Mexico, Brazil, Paraguay, etc.) are exploring similar strategies right now. And they will take a close look at whether Bitcoin positively impacts El Salvador.

All in all, super interesting times lay ahead of us!

It took Bitcoin 12 years to be adopted by the first nation-state!

Let’s see what the next 12 years will look like!

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DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.

Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.