El Salvador is proud to be the first country in the world to grant legal tender status to bitcoin. a majority of lawmakers have approved the bill. This was presented by President Nayyar Pukhale. This law will pave the way for the recognition of Bitcoin as a legal tender in the South American country. now El Salvador has become the first country to approve Bitcoin as the official currency
El Salvador President Nayib Bukele has supported the use of cryptocurrencies to boost the economy. El Salvador’s economy mainly depends on remittances and those working abroad can send money home in Bitcoin.
“It will bring development in financial inclusion, investment, tourism, innovation, and economic for our country,” Nayib Bukele said in a tweet. 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
Citizenship to bitcoin investors
He further announced that Bitcoin investors around the world would receive citizenship of the country. The government will grant citizenship to three bitcoin investors in the country’s economy.
The bill was passed in El Salvador with 62 votes out of a possible 84 votes This means the country would attract more blockchain entrepreneurs and it would lead to economic progression. The country currently uses the US dollar as the official currency.
One of the major reasons that El Salvador declared bitcoin as the official currency is that it doesn’t have its own currency. El Salvador is among the few countries in the world that don’t have its own fiat currency, The country currently uses the US dollar as the official currency. this new law helps El Salvador citizens 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 this move, the citizens of El Salvador will be able to show the price of bitcoin. Tax contributions will also be allowed with their digital currency and exchanges on Bitcoin will not be subject to capital gains tax.
The law further states that the state will “promote the necessary training and measures so that the public can have access to bitcoin transactions.” It added that about 70 percent of the country’s population does not have access to traditional financial services.
El Salvador’s big moves in the bitcoin market failed to boost bitcoin. The prices of bitcoin saw only a minor uptick following El Salvador’s ‘historic’ move. The world’s biggest cryptocurrency was trading 4.48% higher at $34,854.30 at around 9:02 am (GMT-4) Time in Washington, DC, USA.
Events such as El Salvador’s legal tender status to bitcoin move, Elon Musk’s tweets, or other triggers, maybe these all the reasons that El Salvador’s big moves in the bitcoin market failed to boost bitcoin price
A spokesman for the International Monetary Fund on Thursday warned of the risks of using bitcoin transactions after El Salvador’s bitcoin news, “Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis, International Monetary Fund spokesman Gerry Rice told reporters. he also added that Crypto-assets can pose significant risks and effective regulatory measures are very important when dealing with them.”
An International Monetary Fund (IMF) team is scheduled to meet with El Salvador’s President Nayib Bukele. the international organization weighs another relief package for the country amid its recovery from the pandemic