Bitcoin: Legalised by El Salvador

On 8th June, 2021, El Salvador, a small coastal country in Central America, became the first in the world to make Bitcoin (a digital currency) a legal tender.

Key Points

  • The development in El Salvador changes little in terms of Indian monetary calculations around cryptocurrencies.
  • The dynamic underpinning the whole move is that El Salvador has no monetary policy of its own and hence, no local currency to protect.
  • The country was officially ‘dollarized’ in 2001 and runs on the monetary policy of the US Federal Reserve.

Significance

  • Bitcoinization might change nothing on ground if “legal tender” is to be considered ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Buy August 2021 Issue

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Related Content

News Snippets