Although the price of Bitcoin and Altcoins is “struggling” in a correction, the cryptocurrency market is making a lot of positive progress. One of them is that Bitcoin has become legal tender in El Salvador.
Bitcoin is legal currency in El Salvador
As Coinlive reported on June 6, in a video broadcast at the Bitcoin Conference 2021, the “Biggest Bitcoin Conference in History” being held in Miami (USA), President Nayib Bukele of El Salvador announced the important partnership between the country and digital wallet company Strike, to build the country’s modern financial infrastructure using Bitcoin technology.
“Next week, I will send to Congress a bill to make Bitcoin legal tender.”
And said to be done, on the morning of June 9, President Nayib Bukele sent a bill proposal to the National Assembly for consideration.
I’ve just sent the #BitcoinLaw to Congress pic.twitter.com/DljnxsXlyt
— Nayib Bukele (@nayibbukele) June 9, 2021
At this point, the whole world has to admire the processing speed of the El Salvador government. Just hours after the President submitted the proposal, El Salvador officially approved the bill. This means:
Bitcoin has become legal tender in El Salvador
Thus, the previous analysis of Coinlive in the article Bitcoin becomes legal currency in El Salvador – What is the impact on the US? will most likely come true.
El Salvador’s Bitcoin Specific Policy
With the aggregated information, the policy for Bitcoin in El Salvador is as follows:
- Bitcoin is legal currency in El Salvador
- The exchange rate between BTC and USD will follow the market price
- Prices of goods and services will be listed in BTC
- Citizens can pay taxes in BTC
- Bitcoin trading profits are not taxed capital gains, because BTC is a currency
- USD will still be used for accounting purposes
- All economic entities must accept Bitcoin as a payment method
- The state will have universal education courses on Bitcoin, cryptocurrency trading to citizens
- There will be a specific body set up to control and enforce this law
- People can freely switch back and forth between BTC and USD in any activity
- The law will go into effect 90 days after this notice
Besides, there are a number of other “benefits” that are exclusive to Bitcoiner:
- El Salvador will create a free Bitcoin wallet for all citizens
- As the policies mentioned above, it is likely that El Salvador will use the Lightning Network to conduct BTC transactions
- El Salvador will grant citizenship to those who invest from 3 BTC back into this country
Besides, El Salvador is discussing to allow mining of BTC with energy from volcanoes in this country.
And in particular, according to President Nayib Bukele:
President of El Salvador 🇸🇻 , “The US State Department and IMF have already reached out to me”
— Documenting Bitcoin (@DocumentingBTC) June 9, 2021
“American officials and the IMF (International Monetary Fund) have contacted me.”
Thus, it can be seen that in the future there will be other countries “following” El Salvador that consider Bitcoin as legal currency. There are already Paraguay and Panama headed for Bitcoin adoption after the pioneering flag of El Salvador.
Jane
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