FXEMPIRE
All
Ad
Advertisement
Advertisement
Hassan Maishera
Add to Bookmarks
3d rendering of some metallic Bitcoins in front of an badge with the Salvadoran flag

Bitcoin has enjoyed an amazing journey over the past decade, and things might get better in the coming months and years. El Salvador has taken the first step by becoming the first country in the world to make Bitcoin a legal tender.

Bitcoin (BTC) is now a legal tender in El Salvador

The leading cryptocurrency has become an official legal tender in El Salvador. The country’s parliament passed the bill earlier today, making it the first country in the world to make such a move.

Advertisement
Know where Bitcoin is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

President Nayib Bukele sent the law to the Congress, and it was passed, with 62 out of the 84 members voting for it. Thanks to this latest development, Bitcoin’s use case in El Salvador has grown.

The law states that its purpose is to regulate the cryptocurrency as unrestricted tender that offers liberating power to the citinze. Businesses in El Salvador can now display the prices of their goods and services in BTC, and customers can also pay for them using the leading cryptocurrency. The El Salvador residents can pay their taxes in BTC, and all exchanges in Bitcoin are not subject to capital profits tax in the country.

The El Salvador government will now embark on a project to ensure the necessary training and mechanisms that would help its citizens gain access to Bitcoin transactions. El Salvador made the move to make Bitcoin a legal tender due to the lack of financial services in the country. Currently, roughly 70% of residents don’t have access to financial services. With Bitcoin, anyone can send and receive money and also pay for goods and services with ease.

The president submitted the bill to Congress after revealing last weekend that he intends to make Bitcoin a legal tender. Bitcoin’s price is up 4.5% since the announcement this morning.

BTC/USD chart. Source: FXEPMPIRE
Advertisement

More Latin American countries want to support cryptocurrencies

Latin America is looking like the center of cryptocurrency adoption. With El Salvador leading the way, other countries in the region are looking to support cryptocurrencies in various ways. The leaders of Argentina, Panama, Paraguay, Brazil, Mexico and Colombia are reportedly in favor of supporting cryptocurrencies in varying degrees.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker