El Salvador’s President Nayib Bukele has submitted a draft bill that would recognize the leading cryptocurrency bitcoin as legal tender in the country. The President announced the move on Twitter on June 9. Earlier, the Central American country’s President caused a stir within and outside the crypto community when he announced his plans to make bitcoin legal tender. If the bill is passed, it will make El Salvador the first country to recognize cryptocurrency as such.
— Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
El Salvador would become the first country to recognize bitcoin as legal tender.
The bill presented by the President states that it upholds the intention of increasing “the national wealth for the benefit of the greatest number of inhabitants” by generating the necessary conditions. The draft bill also notes that 70% of the population does not have access to traditional financial services, which many crypto insiders highlight to validate the importance of cryptocurrencies. The revolutionary bill states that the market will freely establish the exchange rate between bitcoin and the U.S. dollar, that prices may be expressed in BTC, and that taxes can be paid in BTC.
The country will create an institutional structure to support the effort.
The executive branch of the country will also create the institutional structure to support the effort. Additionally, some regulations will be established to ensure a strong system. In addition to officially recognizing bitcoin as a currency, Bukele also plans to institute more laws to make the country attractive for crypto enthusiasts. The Central American country will not impose capital gains tax on the asset, and cryptocurrency entrepreneurs will also receive permanent residency. The whole initiative is a bid to boost the local economy and make the nation attractive to those in the space, similar to Malta. This is major news for the crypto community and for the leading cryptocurrency.