Bitcoin: Currency Of El Salvador
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- June 11, 2021
The popularity of cryptocurrency and its seemingly endless variety of currencies has caused many people to question whether cryptocurrency can be used as a legal form of currency.
The governments of certain countries, such as China, even impose certain restrictions on the trade and use of cryptocurrency to prevent its impact on consumers from expanding.
But on Wednesday, El Salvador became the first country to allow the popular cryptocurrency Bitcoin to be legally accepted as a form of currency, thus making history.
Bitcoin law was passed by an “absolute majority” with a vote of 62-22 in the country’s Congress.
The President of El Salvador emphasized in the document Nayib, “The purpose of this law is to regulate Bitcoin as an unrestricted legal tender, with free power, no restrictions in any transaction, and the need for public or private individuals or legal entities. Execution of any ownership” Booker. Upload to his Twitter account.
The document states that Bitcoin can be used and must be accepted by any company or used for any retail purchases and tax contributions, and Bitcoin exchanges are not required to pay any capital gains tax.
US dollars will continue to be the country’s “reference currency”, and the market will freely set the two target exchange rates.
The law also stipulates that “when anyone obtains goods or services, every economic entity must accept Bitcoin as payment”, except for companies or services. Seller. Who can’t access the technology that allows access to cryptocurrency? The follow-up clause explains that if the company does not want to keep Bitcoin and bear the changing volatility risk of cryptocurrency, it will establish a trust in the country’s central bank, which basically assumes the risk and converts Bitcoin to U.S. dollars immediately.
“The Bitcoin law proposed by El Salvador clearly stated in many places that the government will provide resources to ensure that Salvadorans can receive training in the use of Bitcoin and obtain the technologies required to use Bitcoin (such as smartphones, software, broadband) It. Booker wrote in another tweet.
Bukele also shared that the country will use volcanic energy extracted from artificial wells to build a new Bitcoin mining center in the country.
Bitcoin is volatile As we all know, its valuation sometimes spikes or collapses. Earlier this spring, the coin’s record price reached around $64,000. As of Wednesday afternoon, Bitcoin had risen by 10% in 24 hours the above.
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