Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻
by
Daltonik
on 22/10/2022, 14:35:24 UTC
⭐ Merited by JayJuanGee (1)
Way Before El Salvador, the first country legally accepting Bitcoin as a legal Tender was actually Japan back in 2016. You guys can check the story here:
...
Besides, Germany was the first to recognise Bitcoin as private money and later as legal tender.

Those articles are not accurate.

Japanese law only makes it legal to use cryptocurrencies for payment. It does not require anyone to accept cryptocurrencies.

Germany declared Bitcoin as a "unit of account" and "private money", but not as "legal tender".

I guess it comes down to your definition of "legal tender". In the U.S., "legal tender" means it must be accepted for payments of debt, taxes, and dues. In El Salvador, not only is Bitcoin "legal tender" by that definition, but it must also be accepted for payments (when possible).

Ok, you may say that there is somewhat a big difference, but what we need to grasp here is that El Salvador was not the first country to allow for Bitcoin to be used as money, Even though it is not considered legal tender in Germany or in Japan, it actually works pretty much the same as legal tender. For me, this is the same as saying the colour is Red or it is Claret...


Nevertheless, there is a difference between a legal tender and a means of payment (legal), if the former is legally used to pay any payments and the creditor is obliged to accept it as payment of a debt, then the means of payment cannot be accepted by the bank as payment for a loan and can only be used to pay for goods and services, and also as an investment. In addition, legal tender is taken into account in the state's gold and foreign exchange reserves and GDP calculations.