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El Salvador Recognizes BTC as Legal Tender


e_abrams
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The country of El Salvador decided to officially recognize Bitcoin as a legal tender, following a bill being passed by the nation’s legislature, with 62 out of 84 members of said legislature voting “yes”. This decision, as it has become popular in modern times, was announced through a tweet by the president of El Salvador,  Nayib Bukele, who proposed the bill to begin with.

According to the new bill:

-Bitcoin will be recognized as a legal tender and any capital gains taxes related to it will be removed

-Taxes can be paid in BTC, while the US dollar will be considered a “reference currency” from now on

-Economic companies in the country will have to accept BTC as a payment method. However, if they feel it’s too risky to keep their funds in BTC, the government can convert said funds into USD. The government also intends to maintain 150 million USD for such needs.

They also are considering legalizing BTC mining in the wake of China banning cryptos recently.

Source: https://theforexreview.com/2021/06/09/el-salvador-recognizes-btc-as-legal-tender/

It would be interesting to see how that works out for them. Hopefully it will be well.

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Great move against Inflation overall, I feel that instead of this making BTC go up insanely,

it will make it more of a stable coin, and less volatile (won't drop under 20k or rise above 60k).

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The World Bank has officially rejected a request by the government of El Salvador to help with the adoption of Bitcoin as legal tender.

Among the motives the World Bank cites for its decision is the lack of transparency when it comes to bitcoin transactions, as well as concerns linked to the environmental impact of bitcoin mining.

Source: https://www.forexbrokerz.com/news/world-bank-will-not-assist-el-salvador-to-adopt-bitcoin

It looks like it won't be so easy to do as they thought.

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Europe seems to be warming up to cryptos as well, the Cypriot regulator CySEC recently decided to start regulating (as opposed to banning) cryptos as well: https://theforexreview.com/2021/09/14/new-crypto-asset-service-providers-policy-issued-by-cysec/ , pushing the distributed ledger technology (DLT) to the mainstream with this new move. 

Edited by e_abrams
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