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El Salvador Is First to Adopt Bitcoin as an Official Currency

10 June 2021, 17:57
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According to the recent news on cryptocurrencies, The Central American National Congress has passed a bill, adopting bitcoin as El Salvador’s legal currency alongside the US dollar.  

El Salvador Is First to Adopt Bitcoin as an Official Currency

After the Salvadorian president announced the news on his Twitter account, the price of a bitcoin rose by eight percent, amounting to $37k.

Extra details about the legislation revealed

The law will come into force in 3 months’ time, and El Salvadorians henceforth would be able to use bitcoin for goods and services purchases, as well as for tax payments.  At the same time, the new law states, that the capital gains tax won’t be applied to exchanges in Bitcoin. The BTS to USD conversion rate would be freely established by the market.

The country’s president, a 39-year-old Nayib Bukele, has also noted that the new legislation would facilitate cross-border money transferring, which amounts to one-fifth of the country’s GDP.

Implementing bitcoin as a legal tender would allow citizens to send and receive money funds via a simple mobile app. Currently, all international money transfers are conducted by the Western Union and often require a personal visit to the office.

The politicians and legislators from several Latin American countries, such as Paraguay, Brazil, and Panama have recently hinted that they all are working on a similar laws. 

Read More: What will impact bitcoin price in 2021?

Read More: Is it difficult to create a cryptocurrency?

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