El Salvador officially recognized bitcoin

The authorities of El Salvador announced the purchase of an additional 200 bitcoins before approving bitcoin as a legal tender. Currently, 400 bitcoins worth about $21 million are stored in El Salvador.

Already on Tuesday, bitcoin will be used in the country as a means of payment along with the US dollar. The law of El Salvador states that bitcoin is a legal tender in the country, and all economic agents must accept this cryptocurrency as a form of payment. Taxes can also be paid in bitcoins.

Residents of the country will also be able to download the «Chivo Wallet» application, created by the government, which will provide people with bitcoins worth $30 to promote the use of this cryptocurrency.

The decision to introduce bitcoin in El Salvador is a bet on attracting new investments to the poor country. The authorities also hope to reduce the fees for sending money transfers from abroad.