El Salvador becomes the first country in the world to formally adopt cryptocurrency as an official form of currency. Passing a law to make Bitcoin legal tender.
El Salvador becomes the first country to adopt cryptocurrencies as official currency
El Salvador passed a law to make Bitcoin legal tender, making it the first country in the world to formally adopt the cryptocurrency as an official form of currency.
The Bitcoin Law was approved by a “supermajority” in the Central American country’s congress.
“The purpose of this law is to regulate bitcoin as an unrestricted legal tender with liberating, unlimited power in any transaction, and in any title that individuals or public or private legal entities require to carry out,” the Bitcoin Law states.
“It is the State’s obligation to facilitate the financial inclusion of its citizens to better guarantee their rights.”
It is estimated that approximately 70 percent of Salvadorans do not have access to traditional financial services such as bank accounts.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
— Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
The classification of bitcoin as legal tender means it will not be subject to capital gains tax, which President Nayib Bukele hopes will also attract crypto entrepreneurs to the country.
The price of bitcoin soared 5 percent following Wednesday’s announcement.