Many governments are considering banning Bitcoin and its use, sometimes severely. At the same time, other countries are preparing to welcome it with open arms. This is the case, for example, in El Salvador, which has just approved its “Bitcoin Law” through Parliament!
Last Saturday, Salvadoran President Nayib Bukele declared that he would present the "Bitcoin Law" to Parliament this week. The news was made during a live broadcast from the Bitcoin conference in Miami, Florida. This bill proposes to make Bitcoin legal tender in the United States.
It's finished! The measure was passed with 62 votes out of 84, as revealed by the President on Twitter!
“We hope that this is just the beginning of a movement to create a space where some of the world's most innovative thinkers can reinvent the future of finance, potentially benefiting billions of people all over the world. «
El Salvador's President, Nayib Bukele
The US dollar has been El Salvador's official currency since 2001. That isn't going to change with Bitcoin's acceptance. Bitcoin isn't replacing the dollar; it's merely becoming another payment option. Specifically, businesses and other businesses will need to be prepared to accept Bitcoin as a payment method (in addition to the US dollar).
This decision is part of a larger effort to fundamentally alter the country and increase its appeal. As a result, it is expected that the official recognition of Bitcoin will result in the creation of tens of thousands of employment. Furthermore, this would include the 70% of El Salvador's population who do not have access to the regular banking system.
President Bukele has announced that there would be no Bitcoin capital appreciation tax now that Bitcoin has been formally recognised. Furthermore, crypto entrepreneurs will be awarded an automatic resident permit in the country!
Finally, you should be aware that transferring money abroad accounts for around a quarter of the country's GDP. Most of the time, this is money sent to the country by expatriate family members. Every year, between 4 and 6 billion USD are sent. Because Bitcoin is a peer-to-peer currency, it will make these money transactions easier and, more importantly, less expensive.