El Salvador Recognizes BTC as Legal Tender

e_abrams

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Dec 11, 2020
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News from El Salvador came this Tuesday, that the nation has officially recognized Bitcoin as a legal tender. This happened after the nation’s legislature passed a bill.

62 members of the legislation our of 84 had voted “yes” in favor of the proposed bill, Nayib Bukele, President of El Salvador, tweeted.

The bill was proposed by the President himself. It covers a wide range of cryptocurrency sides,

  • The bill will recognize Bitcoin as a legal tender, while also removing any capital gains taxes related to the digital coin.
  • Taxes can also be paid in BTC, while the USD will be considered from now on as a “reference currency” during price denomination.
  • economic companies in the country will have to accept BTC as a payment method. Nevertheless, when a merchant does not want to risk it by keeping BTC, the El Salvadorian government will convert said Bitcoin into United States dollars. The authorities will keep a $150 million trust fund for such cases; when funding BTC to USD conversions, while selling soe of the cryptos in order to replenish the fund.
The country head is also seriously considering legalizing BTC mining with the intent of promoting it. This is a direct opposite move of what China recently did, as it banned crypto mining altogether. These plans will be further discussed within a meeting with the International Monetary Fund.

As for the bill, it only remains fro the president to sign it, which is expected to happen sometime this week.
Source
Personally, I am curious to see what the end result of this will be. I think it'd either be a massive success or an unmitigated disaster.