Bitcoin Becomes Legal Tender

Bitcoin has been legal for years. Some cryptocurrencies have been legal tender in some countries because the country made them. See Iceland’s history for an example. Bitcoin specifically has become legal tender in one country, El Salvador. While the country is small, the implications are large. Cryptocurrencies are much larger than before. With a market cap of ~$680B (varying daily), Bitcoin is no longer trivial, and hasn’t been for a long time. El Salvador is simply recognizing a reality that some continue to debate. El Salvador’s motives are also self-serving. By being the first country to formally recognize Bitcoin as legal tender, the country hopes to at least attract some additional commerce. Such an increase would be small in percentage terms for a large country, but a significant boost for a small country.