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El Salvador: Is it a new beginning for Cryptocurrency?

El Salvador, the Central American nation has become the first country to legalize bitcoin. The President of the country, Nayib Bukele, announced the same! Now, the country will accept Cryptocurrency as legal money! In this article, we have everything that you need to know! 

El Salvador- The Country in Brief

The country is located in Central America and its Neighbors are Honduras and Guatemala. The largest city, also the capital city of the country, is San Salvador. The United States recognized the country as an independent nation on May 1, 1849.

Known as the little thumb of America, though the country is geographically small, it has a dense population!  The valid currency there was the American Dollars. Now, Cryptocurrency has been added as a valid currency too! 

The Revolutionary bill

Congress passed the Bitcoin law with a supermajority vote. Here, 62 out of the total 84 members voted for the bill! The law has stated that the exchange rate between Bitcoin and the United States dollar will be freely established by the market. Even Bitcoin will be used to express the prices. Also, tax contributions can be paid in Bitcoin! 

The most important aspect is that exchanges in bitcoin will not be subject to capital gains tax. It will be similar to other legal tenders! Also, any obligations in money in USDs that existed before the effective date of this law, can be paid in bitcoins! These clauses came into the public domain earlier today. After this, the law passed by the supermajority became big news in the Bitcoin network. This happened in the legislative assembly on Wednesday.

Earlier, on Monday, Bukele had announced his plans to build a satellite infrastructure. This is to make internet access easy to rural areas in El Salvador too! Surely, internet availability will ensure the spread of Bitcoin Network too!

The millennial President had also announced incentives for those dealing in Bitcoin! He offered many incentives to crypto entrepreneurs of El Salvador and offered immediate permanent residence to the bitcoin dealers of other countries as well!

These steps of President Nayib Bukele have received a warm welcome from the entire crypto ecosystem. The passing of the law saw an increased search for real estate investments in the country. Also, the price of bitcoin went marginally up after the announcement. The price of bitcoin increased from $33,555 to $34,398 as per CoinMarketCap.

 Stay tuned for further updates!

Also Read: The Gaganyaan mission and the delay due to pandemic

Apexa

This is Apexa Rai! Student- B.A. Honors(Journalism) Intern at Akashbaani Loves to write! An optimistic Wildflower!

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