El Salvador is the first country in the world to give bitcoin legal tender

The legislative assembly approved by a large majority the measure proposed by the "millennial president" Nayib Bukele

Nayib Bukele, president of El Salvador, in his official Twitter profile photo The first state in the world to use bitcoin as legal tender will be El Salvador. The legislative assembly approved with 62 votes out of 84 the bill proposed by President Nayib Bukele, announced to the world with a video message at the Miami Bitcoin 2021 industry conference a few days ago. The exchange will remain freely anchored to the dollar and the market and, from now on, taxes can be paid in bitcoin, prices can be shown with the "B" symbol next to that of the dollar, each economic player will have to accept bitcoins if offered and currency exchanges will not be subject to capital gains taxes, like any other currency.

About 20% of national GDP comes from emigrant remittances, on which traditional money transfer services apply commissions that reach up to 10%, allowing some time to elapse from sending to receiving. To allow people to circumvent this mechanism with instant, peer-to-peer transactions, the San Salvador government has partnered with Strike, a digital micropayment platform with apps, which will provide digital wallets to store and spend the cryptocurrency. br>
The transaction system is that of the lighting network, a superstructure based on smart contracts for the verification of private keys between the two players in the exchange and off-chain with respect to the blockchain. All this allows you to not pay commissions for bitcoin mining, recording only the final status of the wallets and enabling the scalability of the mechanism, free from the global physical limit of 7-8 transactions per second typical of the underlying "block chain".

All this, in a country where 70% of the population does not have access to traditional financial services, such as a bank account or credit card. The state will therefore promote "the necessary training and mechanisms for the population to have access to bitcoin transactions", reads the text of the law drawn up in Spanish and English, the US dollar being the official local currency (on Tuesday the exchange rate with bitcoin is at 33,900 dollars approximately).

#Btc 🇸🇻 https://t.co/x5r0Td6SiQ

- Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021

Who is the “millennial” president behind the bitcoin law

“History! #Btc "is the tweet with which Bukele announced the approval of the so-called Ley Bitcoin. The 39-year-old head of government has been in office since June 1, 2019 and has already been the mayor of the capital, San Salvador and Nuevo Cuscatlan. The son of a Palestinian immigrant, entrepreneur and imam, Bukele worked in his father's advertising agency, which curated the image of the country's historic left-wing party.

The "millennial president" came to government with the post ideological party Nuevas Ideas. Opponents contest him for controversial methods: for example, in 2020 he brought the army to the courtroom, on the occasion of the vote to approve a 109 million loan for security (the country is plagued by severe organized crime). With the move on bitcoin he gave the small Central American country, overlooking the Pacific with 6.4 million inhabitants with just over $ 4,100 in per capita income, a limelight worthy of a world vanguard of fintech. His Twitter profile has soared to 2.6 million followers.


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Topics

Bitcoin Cryptocurrencies Finance Fintech Tax policy globalData.fldTopic = "Bitcoin, Cryptocurrencies, Finance , Fintech, Politics, taxes "

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