El Salvador makes Bitcoin a legal tender
Bitcoin is the leading cryptocurrency in the world. It has further cemented its position as a cryptocurrency that is gaining wide adoption after El Salvador made it an official legal tender in the country.Lawmakers in the Central American country’s Congress approved the bill sent by President Nayib Bukele to make Bitcoin a legal tender. By so doing, El Salvador has become the first country in the world to raise Bitcoin’s status as a legal tender.
The lawmakers approved this bill earlier today. The law reads, “The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.”
After passing this law, businesses in the country can show prices of goods and services in Bitcoin, residents can also pay in bitcoins, and taxes can also be settled using the digital currency. The law also dictates that exchanges in Bitcoin are not subject to capital gain tax.
Cryptonary reported a few days ago that El Salvador wants to make Bitcoin a legal tender after the president suggested it at the Bitcoin Miami conference.
Latin American countries are bullish on Bitcoin
Latin America is becoming the hub of cryptocurrency adoption. Several leaders in the region are reportedly in favour of adopting cryptocurrencies, including Paraguay, Panama, Argentina, Mexico, Colombia and Brazil.According to El Salvador’s Bitcoin law, the government will “promote the necessary training and mechanisms so that the population can access bitcoin transactions.” The country is adopting Bitcoin as a legal tender due to the financial challenges faced by the majority of the country. Currently, roughly 70% of the residents don’t have access to financial services.
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