August 3, 2021

Newspay

Bitcoin & Ethereum Blockchain News

El Salvador Grants Favorable Opinion Toward Groundbreaking Bitcoin Bill

CORRECTION: El Salvador has voted to grant favorable opinion toward the bill that makes Bitcoin legal tender, receiving 60 out 84 votes. Congress is yet to pass it.

Source: u.today

The decree will come into effect in 90 days since its publication in the Official Gazette.

El Salvador President Nayib Bukele has just tweeted about sending a draft version of his Bitcoin bill to Congress.

As reported by U.Today, Bukele proposed recognizing Bitcoin as legal tender in the country in addition to the U.S. dollar after joining forces with Lightning payment app Strike.

Most importantly, the bill contains a provision that would make it mandatory for “every economic agent” to accept Bitcoin payments.

The government will also ensure that the cryptocurrency is instantly convertible to U.S. dollars to mitigate any volatility issues.

The decree states that prices may be expressed in Bitcoin, but the greenback will still be used as a reference currency.

Bitcoin transactions won’t be subject to capital gain tax. Moreover, Salvadorans will be able to pay their tax contributions in the flagship cryptocurrency.

Image by @nayibbukele

The bill had a big likelihood of passage given that Bukele holds a super-majority in Congress after a big election win in early March.