History: Bitcoin Officially Becomes the National Currency in El Salvador

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History: Bitcoin officially becomes the national currency in El Salvador

CRYPTOCURRENCY: The Legislative Assembly of El Salvador approved Bitcoin to be allowed as a National currency in the country

Despite the gloomy price of digital assets, their adoption is making great strides. This week Panama, Paraguay, Argentina and Brazil have all expressed their desire to integrate cryptocurrencies into their countries’ economies. These statements follow the shocking announcement by Nayib Bukele, President of El Salvador, who intends to make Bitcoin legal tender in his country.

Bitcoin, finally legal tender

The Legislative Assembly of El Salvador approved, on the night of June 8, the law on bitcoin presented by the president of the country. With 62 votes out of 84 , the new legislation was approved with an overwhelming majority, although this will come as little surprise, since Congress is overwhelmingly controlled by the president’s party. The law must now be ratified by Nayib Bukele.

Among the articles of the so-called “Bitcoin” law, we find the possibility of using Bitcoin to pay taxesexemption from tax on capital gains in BTC and the use of the US dollar as “reference currency”. for price determination. In addition, the bill provides that “any economic agent must accept bitcoin as payment when it is offered to him by the one who acquires a good or service. 

The new law also provides that prices may be expressed in bitcoin and that this cryptocurrency must be accepted throughout the national territory, with exceptions for remote areas where the necessary technical infrastructure is not yet accessible, but also for citizens. who do not have access to the means necessary to carry out these electronic transactions.

The law will enter into force 90 days after its promulgation by President Nayib Bukele. However, all companies operating in El Salvador will have to adapt and put in place technical devices to accept this new means of payment. With this vote, El Salvador enters through the front door in the history of the economy and will irreparably mark that of Bitcoin.

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