Bitcoin is now a legal tender in El Salvador

Bitcoin is now a legal tender in EL Salvador, making it the first country to officially adopt the cryptocurrency. The congress of the Central American country voted in favor of the law with 62 out of 84 votes.

El Salvador’s millennial president, Narib Bukele, sent the law to vote on Wednesday. The price of the bitcoin after the vote was $34,239.17.

Con 62 votos, el pleno legislativo aprueba la #LeyBitcoin con la que El Salvador adopta el #Bitcoin como moneda de circulación legal.

¡#LaNuevaAsamblea sigue haciendo historia! pic.twitter.com/Ur9OQzPvYI

— Asamblea Legislativa (@AsambleaSV) June 9, 2021

This step is to promote the economic growth of El Salvador and the in the hope that the digital currency will increase the national wealth. It also is with the intent to better financial inclusion of its citizens.

The exchange rate between Bitcoin against the US dollar would be freely established by the market. And tax contributions can be made in bitcoin. Additionally, as the draft decrees, every economic agent must accept bitcoin when offered in exchange for a good or service. The exception to be made if one does not have access to the necessary technologies. The state then will provide the necessary training and mechanisms for the population to access bitcoin transactions.

I’ve just sent the #BitcoinLaw to Congress pic.twitter.com/DljnxsXlyt

— Nayib Bukele (@nayibbukele) June 9, 2021

The President also expressed that there would be no capital gains tax on bitcoin exchanges and cryptocurrency entrepreneurs will be eligible for permanent residency in the country.

Additionally, the US State Department improved EL Salvador’s Travel Advisory to Level 2 on par with several European nations. Another supposed tax haven, Panama is at Level 3.