El Salvador is making history Tuesday by becoming the first sovereign government to use bitcoin as legal tender—and a California-based cryptocurrency unicorn is behind the technology helping to power the effort.
Nayib Bukele, El Salvador's president, delivers a speech to Congress at the Legislative Assembly building in San Salvador, El Salvador.Salvador is making history Tuesday by becoming the first sovereign government to use bitcoin as legal tender—clearing the way for residents to pay taxes and other debt with the cryptocurrency, and allowing hundreds of thousands of businesses nationwide to accept it as payment. The Central American nation of 6.
The decision to use the U.S. company—and a publicly available blockchain—to power such a vital part of the nation’s infrastructure shows how far the cryptocurrency has come since the days when it was seen as a bastion for criminals. But the nation’s controversial president still has many questions to answer. El Salvador's presidential press secretary didn't immediately respond to a request for comment.
At least for now, the Chivo wallet will only support bitcoin and USD, and users won't incur fees when transacting with others using the wallet—a point President Bukele has stressed on Twitter. Funds withdrawn from the wallet, however, will incur fees. BitGo has worked out a"small commercial relationship" with El Salvador's central bank, Belshe says, but financial terms weren't disclosed.
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El Salvador Goes On A $21 Million Crypto Buying Spree As Bitcoin Becomes Legal TenderI am a London-based reporter for Forbes covering breaking news. Previously, I have worked as a reporter for a specialist legal publication covering big data and as a freelance journalist and policy analyst covering science, tech and health. I have a master’s degree in Biological Natural Sciences and a master’s degree in the History and Philosophy of Science from the University of Cambridge. Follow me on Twitter theroberthart or email me at rhartforbes.com
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