The proposed bill to make Bitcoin legal cash in the small Central American nation was passed by the Legislative Assembly at roughly 06:05 UTC on Wednesday June 9.
El Salvador’s president has stated that the cryptocurrency Bitcoin would be made legal tender in his country. The Central American country would be the first in the world to formally accept the digital currency if his plan is approved by legislature. El Salvador’s national currency is the US dollar.
Bitcoin is infamous for its extreme price swings, which have led some detractors to conclude that it is unfit to be used as a currency. It is still unclear how El Salvador will implement bitcoin as legal cash in the long run.
President Bukele’s incentives for the Crypto Users
Bitcoin investors will not be subject to capital gains taxes, and cryptocurrency entrepreneurs will be granted immediate permanent residency. Following his recent announcement to declare Bitcoin legal tender in El Salvador, President Nayib Bukele’s incentives for the crypto community have piqued the interest of investors and entrepreneurs alike.
President Bukele retweeted cryptocurrency entrepreneur Justin Sun’s tweet, “Crypto investors and entrepreneurs will start to immigrate to El Salvador!” and highlighted four benefits and privileges for individuals who seek to relocate to El Salvador, particularly for the cryptocurrency community.
Other reasons include “excellent weather, world-class surfing beaches, and beach front properties for sale,” as well as the absence of property taxes.
1. Great weather, world class surfing beaches, beach front properties for sale.
2. One of the few countries in the world with no property tax.
3. No capital gains tax for #Bitcoin, since it will be a legal currency.
4. Immediate permanent residence for crypto entrepreneurs. https://t.co/j3eugJQCMd
— Nayib Bukele 🇸🇻 (@nayibbukele) June 6, 2021
He then announced at 02:06 UTC on June 9 that he had just delivered the proposed bill to the Legislative Assembly and then he declared that the bill had been approved just four hours later. The Legislative Assembly confirmed this a few minutes later.
— Asamblea Legislativa (@AsambleaSV) June 9, 2021
It all began on June 5, when Zap Solutions Founder and CEO Jack Mallers, who helped in the bill’s drafting, made the announcement at the Bitcoin 2021 conference in Miami. During his speech, Mallers read out a tiny passage from the proposed measure and played a recorded video greeting from President Bukele. Mallers went on to declare that with the support of Blockstream, his company would create an innovation center in El Salvador.
— Nayib Bukele 🇸🇻 (@nayibbukele) June 5, 2021
Bitcoin, according to President Nayib Bukele, will make it easier for Salvadorans foreign nationals to send money back home.