President Nayib Bukele of El Salvador has proposed a measure to make bitcoin legal cash in the country.
El Salvador’s President, Nayib Bukele, has proposed a measure that would make bitcoin, the most popular cryptocurrency, legal cash in the country. On June 9, the President announced the action on Twitter. When the President of the Central American country revealed his ambitions to make bitcoin legal cash, it stirred both inside and beyond the crypto world. El Salvador will become the first government to recognize cryptocurrencies as such if the measure is enacted.
El Salvador would be the first country to accept Bitcoin as a form of payment.
According to the President’s law, it supports developing national wealth to benefit the most significant number of people by creating the appropriate circumstances. Many crypto insiders point to the draft bill’s mention that 70% of the population lacks access to traditional financial services, which many crypto insiders use to justify the need for cryptocurrency. The revolutionary law declares that the market will determine the exchange rate between bitcoin and the US dollar, that pricing would be expressed in BTC, and that taxes would be paid in BTC.
To assist the effort, the country will establish an institutional framework.
The country’s executive branch will also put in place the necessary institutional framework to assist the initiative. In addition, various laws will be put in place to guarantee that the system is robust. Bukele aims to enact further regulations to make the nation more appealing to crypto specialists and formally recognize bitcoin as a currency. The Central American government will not tax the asset’s capital gains, and cryptocurrency entrepreneurs will be granted permanent residence. The plan is part of a larger effort, similar to Malta’s, to enhance the local economy and make the country more appealing to space travelers. This is massive news for the bitcoin community and the most popular coin.