Bitcoin Becomes Legal Tender in El Salvador

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The Legislative Assembly of El Salvador has just passed a law that makes Bitcoin legal tender in the country, Nayib Bukele, the president of the country, has announced via Twitter:

La #LeyBitcoin acaba de ser aprobada por mayoría calificada en la @AsambleaSV.

¡62 de 84 votos!

¡Historia! #BTC🇸🇻

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

According to him, the law has been passed with a “supermajority” (62 votes in favor out of the 84 possible votes). It is worth mentioning that while the law has been passed by the country’s Assembly, it still must be signed by the president, after which it will come into force immediately. This is expected to happen already today.

The news about BTC possibly becoming a legal tender in the country was known just 2 days ago. After the law comes into force, citizens will be able to use BTC to pay taxes. In addition, the coin will be excluded from capital gain taxes and the dollar will still be used as the reference currency when denominating prices.

The law stipulates that everyone must accept Bitcoin, including merchants and any stores, if it is offered by the buyer to make the transaction.