June 15, 2021

El Salvador officially legalized bitcoin payments

El Salvador officially legalized bitcoin payments

  • El Salvador is the first country in the world where BTC will become an official means of payment.
  • Everything economic agents will be required to accept bitcoin as payment.
  • El Salvador will provide the infrastructure for operations with the first cryptocurrency, including a Bitcoin wallet.
  • Anyone can get a passport of a citizen of El Salvador by investing 3 BTC in the country's economy.

El Salvador's Legislative Assembly passed a bill on recognition of bitcoin as an official means of payment on the territory of the country on a par with the US dollar.

Earlier, the President of El Salvador, during a speech at the Bitcoin 2021 conference in Miami, said that he intends to make bitcoin the official means of payment in the country.

At the beginning of the week, he sent the appropriatethe bill went to Congress, and the Legislative Assembly of El Salvador supported it. 62 parliamentarians agreed to make bitcoin an official means of payment along with the US dollar, 17 - refused. One person abstained.

At the moment, bitcoin is not yetofficial means of payment. The law must be signed by the president (which is likely to happen very soon), then the relevant information will be published in the official government newspaper, and only 90 days after that the law will come into force.

According to the published version of the bill,bitcoin can be used to set prices and pay taxes. However, the dollar will still be the base currency. An interesting fact is that transactions with BTC are not subject to capital gains tax, like transactions with any other means of payment. That is, if a person received bitcoin (for example, bought it), and after a while the value of the coin in dollar terms increased, the capital gains tax will not have to be paid.

"Any economic agent is obliged to accept bitcoin if the buyer is willing to pay with it.", - the document says.

The exceptions are situations when the seller does not have the technical ability to accept the first cryptocurrency as payment.

Also the government of El Salvador guaranteesinstant automatic conversion of bitcoin into the US dollar, which will remain the base currency of the state. To do this, the authorities will launch a $ 150 million trust fund to buy a digital asset from the public. The government is also considering storing bitcoin on a balance sheet.

“If a business owner wants to sell hisproducts, he is obliged to accept bitcoin. But if he does not want to take on the risks of pricing, then he has the opportunity to convert the received BTC into dollars. Of course, he could have done it himself on the crypto market, but he also has the opportunity to turn to the government for instant conversion ", - noted the President of the country Nayib Bukele.

He also added that the El Salvadorian authorities intend to develop the bitcoin mining industry. The state plans to attract mining companies to sell them excess electricity.

El Salvador plans to introduce an infrastructure for working with a crypto asset, including a bitcoin wallet. But it is not necessary to use it: each economic entity can choose the desired wallet himself.

And that is not all.El Salvador intends to develop its own economy through the adoption of bitcoin. Now everyone who wants to obtain the citizenship of the country can do this by investing in the economy in the amount of 3 BTC or more.

"We want Bitcoin users to come to us", - noted Bukele.

Whether El Salvador will keep the received BTC as reserves is unknown.

“I cannot answer this question yet, everything is developing very quickly. We do not exclude such a possibility "- said the president about this.

Apparently, the reaction of the cryptocoossociate to this news was irrelevant, especially the analyst and trader PlanB was impressed:

“Congratulations to Nayib and Salvador !! El Savador leads the world to freedom. The name speaks for itself. Other countries will follow this example. A new Renaissance has begun! "

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El Salvador officially legalized bitcoin payments

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