EI Salvador announced to offer citizenship to Bitcoin holders and decided to adopt BTC as the official currency. EI Salvador has become the first country to approve Bitcoin as the official currency. On June 9, the EI Salvador Congress approved a bill to make Bitcoin a legal tender in the country. The Bill was passed in EI Salvador as it got 62 votes in favor out of possible 84 votes.
Key Highlights
- EI Salvador has become the first country to approve Bitcoin as the official currency.EI Salvador the first country to make Bitcoin legal tender.
- Bitcoin holders will get citizenship in EI Salvador.
EI Salvador has become the first country to approve Bitcoin as the official currency. On June 9, the EI Salvador Congress approved a bill to make Bitcoin a legal tender in the country. The president of EI Salvador Nayib Bukele announced this news through his Twitter handle. In his tweet, he further added that those who invest in Bitcoin in EI Salvador will get citizenship of the country. EI Salvador announced to offer citizenship to Bitcoin holders. People who invest three BTC in the economy of EI Salvador will be given citizenship by the government.
On June 9, the EI Salvador Congress approved a bill to make BTC a legal tender in the country. The Bill was passed in EI Salvador as it got 62 votes in favor out of possible 84 votes. The purpose of this law is to regulate Bitcoin and to introduce it as legal tender. A legal tender allows transacting easily and to any title and anyone public, private, or legal person can carry out the transaction easily. With this announcement, the people of EI Salvador can show the prices in Bitcoin and they can pay the taxes with BTC. The exchange in BTC will not be subjected to the capital gain tax.
This announcement comes after few days after Bukele stated that he will send a bill to Congress to make BTC a legal tender in the Central American Nation. Bukele took this decision to boost the economy of EI Salvador and with this Salvadorans living outside the country can send the money to the home. This will generate new jobs in Salvador and the country will experience financial inclusion to the country. Bukele said this at a conference in Miami this year.
Other Countries will face difficulty
After the announcement of EI Salvador approving BTC as official currency and replacing fiat currency with digital currency, the other countries will face difficulty in replacing fiat currency with digital currency. EI Salvador easily replaced it because it doesn’t have its currency. Currently, EI Salvador is using the US dollar as the currency.
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