- In a groundbreaking move, the Republic of El Salvador has approved Bitcoin as a legal tender.
- The country has become the first to accept crypto for all forms of monetary debt.
The Republic of El Salvador has become the first country in the world to make Bitcoin a legal tender. Already, the country’s legislature has passed a bill to make the top coin an acceptable form of money. Following the approval of the bill, it becomes the first country to acknowledge and accept crypto for all forms of monetary debt.
The president of El Salvador, Nayib Bukele, presented the Bitcoin proposal to Congress on the 8th of June. According to a Twitter post by Bukele, the purpose of the bill 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.”
In addition, the bill asked that residents may be able to pay their taxes with Bitcoin. The proposal further talked about the exclusion of exchanges in Bitcoin from capital gains and that the US dollars be used as “reference currency” for accounting purposes. Also, the Bitcoin Law will order every economic agent to accept BTC as payments or goods or services.
Article 8 of the Bill states:
Without prejudice to the actions of the private sector, the State shall provide alternatives that allow the user to carry out transactions in bitcoin and have automatic and instant convertibility from bitcoin to USD if they wish. Furthermore, the State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.
The law revealed that the State would guarantee automatic and instant convertibility from BTC to USD by creating trust at the Banco de Desarrollo de El Salvador (BANDESAL).
62 of 80 El Salvadorian Congress members support Bitcoin as legal tender
The proposal was welcomed among legislative members as 62 out of 80 officials supported the law. 19 members opposed while three abstained. President Bukele announced the approval among the Congress members in a tweet, saying, “History!”
Bukele’s tweet on the approved bill has generated a lot of reactions from members of the crypto community. Popular crypto analyst PlanB rejoiced with Nayib and the people of El Salvador as Bitcoin became a legal tender in the country. PlanB said that more countries would emulate El Salvador’s crypto adoption. He also added that the new step marked the beginning of the “New Renaissance.”
Other countries must follow El Salvador 🇸🇻 FAST!! Paraguay 🇵🇾 Argentina 🇦🇷 Panama 🇵🇦 Brazil 🇧🇷 Nicaragua 🇳🇮. El Salvador decision to make #bitcoin legal tender has geopolitical implications. US will react, with IMF or aircraft carriers. Easy to attack 1, difficult to attack many
— PlanB🇸🇻 (@100trillionUSD) June 9, 2021
Furthermore, reports showed that El Salvador would give citizenship to anyone that can invest 3 BTC into the nation’s economy.
Bukele revealed his plans to legalize BTC as a legal tender at the 2021 Bitcoin conference in Miami. While speaking in the video podcast, the president said that the development would create more jobs for citizens. He explained how 1 percent of Bitcoin’s market cap if invested in El Salvador, can boost the country’s economy.
After the bill approval, Congressman William Soriano said that a major economic transformation has begun. According to the bill, the decree will be enacted 90 days after it has been published in the Official Gazette.