Today, Wednesday, El Salvador adopted Bitcoin as a legal currency, becoming the first country in the world to adopt this digital currency, after lawmakers in Congress voted by a majority in favor of the virtual currency law.
El Salvador aims from the law to regulate Bitcoin, a legal currency that is unrestricted and unlimited in any transaction, prices can be displayed in Bitcoin and tax contributions can be paid in digital currency, and Bitcoin exchanges will not be subject to capital gains tax. Read also Experts: For these reasons, Bitcoin will not turn into a means of payment Al Jazeera Net poll: Investing in Bitcoin and its sisters is not safe and has no price ceiling.. So what did the experts say? Elon Musk: Tesla cars can now be bought with Bitcoin How did Bitcoin become the pioneer of digital currencies?
Salvadoran President Najib Bukele explained that this step will facilitate procedures for El Salvador citizens working abroad to send their money to the country.
On Saturday, the president announced his intention to legalize Bitcoin with the aim of creating job opportunities and allowing access to the financial system for thousands of people who are outside the legal economy.
He explained that 70% of the population do not have bank accounts and work in the informal economy.
In El Salvador’s dollar-dependent economy, remittances to El Salvador from abroad constitute a significant subsidy and account for 22% of GDP.
Bitcoin is an asset that is not regulated by a central authority.