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Cryptocurrency has got its first legal home in El Salvador, the first country in the world to recognize the cryptocurrency bitcoin as legal currency.
President Nayib Bukele informed in a tweet “The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress,” the 39-year-old president Bukele tweeted on Wednesday. “62 out of 84 votes! History! #btc”
The 39-year-old president made the announcement of accepting the popular cryptocurrency as a legal tender in a recorded message that was played at a Bitcoin conference.
Hence citizens will be able to pay taxes in bitcoin and, perhaps most importantly for bitcoin diehards, bitcoin won’t be subject to capital gains taxes in El Salvador. The price of bitcoin, shortened as BTC, rose following the news out of El Salvador, up 4.3%. The so-called Bitcoin Law acknowledges that roughly 70% of Salvadorans don’t have access to traditional financial services and proposes bitcoin as a possible alternative.
The law suggests bitcoin is great as a digital currency because it, “answers exclusively to free-market criteria, in order to increase national wealth for the benefit of the greatest number of inhabitants.”
With 62 votes, the legislative plenary session approves the #LeyBitcoin with which El Salvador adopts the #Bitcoin as legal currency, President Nayib Bukele said
Bitcoin, the world’s largest cryptocurrecy, has become the legal tender in El Salvador. The central American country is now the first ever to make the cryptocurrency legal tender. El Salvador Congress on Monday approved President Nayib Bukele’s proposal to embrace the cryptocurrency.
“It will bring financial inclusion, investment, tourism, innovation and economic development for our country,” Bukele said.
The use of bitcoin, whose use will be optional, would not bring risks to users. Its use as legal tender will go into law in 90 days.
“In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy,” President added.
