Which country became the first in the world to adopt bitcoin as legal tender, in 2021?
- A.Venezuela
- B.El Salvador
- C.Nigeria
- D.Switzerland
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Explanation
The correct answer is B, El Salvador. The Central American country passed a Bitcoin Law in June 2021 and became, in September 2021, the first state anywhere to give bitcoin the status of legal tender alongside the United States dollar, which it already used as its currency. The step drew wide comment because it made a privately created token acceptable in payment of debts in a sovereign country, and international financial institutions warned about the risk to stability. Option A is wrong because Venezuela issued a state-backed token called the petro but never made bitcoin legal tender. Option C is wrong because Nigeria launched a central bank digital currency, the eNaira, which is the opposite approach, a sovereign digital currency rather than a private token. Option D is wrong because Switzerland, although friendly to the industry, treats these tokens as assets and not as legal tender.