News

El Salvador to Start Paying Salaries in Bitcoin


15 Jun 2021

The adoption of cryptocurrencies as a means of payment has been on the rise this year. El Salvador is expanding its focus on how BTC can help its economy, with the Central American country now considering using BTC to pay salaries.

The El Salvador government is now debating on whether companies can pay their workers in Bitcoin. A recent tweet by Fuego, a local radio station, stated that three government departments were discussing whether companies should start paying wages in Bitcoin. The revelations about this were made by Rolando Castro, the Minister of Labor in the country.

BTC as Legal Tender

Castro stated that the decision to explore if companies can pay salaries in Bitcoin would happen after using Bitcoin as legal tender in the country is implemented into law. Castro also stated that his ministry was working with the Ministry of Economy and Finance to strategize on the roadmap for this.

In early June, the Central American country made headlines after its congress voted on Bitcoin as legal tender. The motion was tabled in Congress by Nayib Bukele, the country’s president. The news led to increased interest in El Salvador, given that Google metrics stated that the search for El Salvador reached an all-time high after the news.

Raised Concerns

The move by El Salvador to accept BTC as legal tender has sparked mixed reactions from different parties. Crypto enthusiasts and supporters have lauded the move, given that it is a step closer to boosting the legitimacy of Bitcoin and the entire crypto market.

On the other hand, global financial institutions have raised concerns over the matter, given that the prices of Bitcoin can be highly volatile, which could pose a huge risk to the economy of El Salvador in case there is a massive price dip. There is also the concern about the percentage of El Salvadorians who would willingly accept BTC payments.

Despite the scepticism, El Salvador is still pushing for the adoption of Bitcoin in the country. The country is also receiving support from external parties, such as the Central American Bank for Economic Integration (CABEI), which recently stated that it would provide the country with the necessary technical support to implement the use of Bitcoin as legal tender.

On the issue of the effect of Bitcoin mining on the environment, El Salvador stated that it was planning to enforce Bitcoin mining using energy sources from volcanoes.


Worldwide News

Grayscale launches its first European ETF

Grayscale has launched its first European ETF The ETF will track the performance of the Bloomberg Grayscale Future of Finance index The ETF will start trading on May 17 Grayscale, the worldâ€...


FTX CEO says Bitcoin cannot be a successful payment system

The FTX CEO has said that Bitcoin cannot be used as a successful payment method The executive said that Bitcoin had the potential to be used as a store of value like gold Bankman-Fried has previou...


Elon Musk says Dogecoin has the potential to be the world’s currency

Elon Musk has said that Dogecoin has the potential to be a currency Despite the praise, Dogecoin failed to make any significant gains Dogecoin remains one of the worst-performing tokens in the top...


Australian Taxation Office requires crypto holders to pay capital gains taxes

Australia has required crypto holders to pay taxes on crypto gains and losses The tax body will tax cryptocurrencies in the same way as property and shares Australia recently approved a Bitcoin an...


Binance unveils cryptocurrency Visa card for Ukrainian refugees

Binance has launched a crypto Visa card for Ukrainian refugees. The card will be used to make direct donations to Ukrainian refugees. Binance also released a $10M fund to support Ukrainian refugees....