El Salvador approved the new Bitcoin law after a long debate and now bitcoin has a status of a legal tender in the country as we can see more in our latest Bitcoin news.
With 62 favorable votes, the Legislative Assembly of El Salvador approved the new bitcoin law that was presented by the president of the country Nayib Bukele. At 8 pm, President Nayib Bukele announced that he had introduced the Bitcoin Law to Congress of El Salvador and the legislative instrument gave Bitcoin the status of a legal tender of mandatory acceptance in the country. 2 hours after the announcement, the country’s legislative assembly revealed that they discussed the approval with Deputy Caleb Navarro and revealed a favorable opinion on the Financial Commission. Congressman Chris Guevara commented during the plenary in which other economic issues included a modification of the budget law of the nation in 2021:
“I believe that of all the decisions we are going to make in this session, this one, the Bitcoin Law, is one of the most relevants.”
#SesiónPlenaria7✍🏻 El diputado @CalebNNavarro procede a la lectura del dictamen favorable de la #ComisiónFinanciera en el sentido se apruebe la #LeyBitcoin para que dicha moneda virtual sea de curso legal en el país. pic.twitter.com/WdtMHpor7y
— Asamblea Legislativa (@AsambleaSV) June 9, 2021
With this, El Salvador became the first country in the world to recognize BTC as a legal tender and the period of all institutions in the country to adapt to a new era where BTC will circulate as a currency among the people in the country. The new law recognizes bitcoin as a legal tender, unrestricted with liberatory power, and has unlimited characteristics which make bitcoin on par with the US dollar as a currency of free use and mandatory acceptance.
The law stipulates that the exchange rate will fluctuate according to the free market and orders the creation of special trust in the Development Bank of El Salvador to make sure there’s an immediate exchange between both currencies. The new law says that the prices have to be expressed in Bitcoin and that this cryptocurrency has to be accepted on the national territory with an exception for those remote areas or people that have no access to the necessary means to make electronic transactions. Likewise, financial operations in bitcoin-like trading will be exempt from capital gains taxes since Bitcoin is now a legal tender.
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