The proposed bill to make Bitcoin legal cash in the small Central American nation was passed on Wednesday, November 9th.
The President of El Salvador has declared that the cryptocurrency Bitcoin will become legal tender in his country. The Central American country would be the first country in the world to officially accept digital currency if its plan is approved by lawmakers. The national currency of El Salvador is the US dollar.
Bitcoin is notorious for its extreme volatility in price, which has led some critics to conclude that it is unsuitable as a currency. It is still unclear how El Salvador will introduce Bitcoin as legal cash in the long term.
President Bukele Incentives for the Crypto Users
Bitcoin investors are not subject to capital gains tax, and cryptocurrency entrepreneurs are granted instant permanent residence. Following his recent announcement to make 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 the tweet from cryptocurrency entrepreneur Justin Sun, “Cryptocurrency investors and entrepreneurs will start immigrating to El Salvador!” Highlighting four benefits and privileges for people moving to El Salvador, particularly the cryptocurrency community.
Other reasons are “excellent weather, world-class surfing beaches and beachfront properties for sale,“As well as the lack of property taxes.
1. Great weather, world class surfing beaches, beachfront properties for sale.
2. One of the few countries in the world with no property tax.
3. No capital gains tax for #Bitcoinbecause it is 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 turned the bill over to the Legislative Assembly, then stated that the bill was approved just four hours later. The legislative assembly confirmed this a few minutes later.
– Asamblea Legislativa (@AsambleaSV) June 9, 2021
It all started on June 5th when Zap Solutions founder and CEO Jack Mallers, who helped draft the bill, made the announcement at the Bitcoin 2021 conference in Miami. During his speech, Mallers read a tiny passage from the proposed measure and played a recorded video greeting from President Bukele. Mallers went on to say that with support from Blockstream, his company will create an innovation hub in El Salvador.
– Nayib Bukele 🇸🇻 (@nayibbukele) June 5, 2021
Bitcoin, according to President Nayib Bukele, will make it easier for foreign nationals of Salvador to send money home.