A bill has recently been passed by the legislature of El Salvador to declare Bitcoin (BTC), in the country, as a legal tender. For the first time, the country has realized that, for any type of financial debt, cryptocurrency is a satisfactory means of payment.
Nayib Bukele, the president, has submitted the proposal of Bitcoin (BTC) to the Legislative Assembly on Tuesday, requesting the country to categorize and utilize bitcoin as a legal tender without any restrictions.
The legislature provided a favourable opinion about the proposal before the conduct of the official voting. Late at night, on Tuesday, the bill was passed by the members of the legislature, acquiring a supermajority of 62 votes in favour of the bill out of the total 84. The counting reveals that 19 members opposed the proposal while three of the members did not cast a vote at all. Reflecting on the matter, Bukele tweeted that it’s a historical moment as the Salvadoran Congress has approved the Bitcoin Law by a supermajority.
El Salvador is not to be titled as the only country in which Bitcoin (BTC) will be allowed to be used for the purchase of services and goods, although it is the first country that has adopted cryptocurrency for monetary debt of all kinds. Simultaneously, cryptocurrency is defined as a property value by the Payment Services Act in Japan. It declares that the only applicability of crypto transactions is the digitally stored property values on electronic devices, so it is not a legal tender.
The new Bitcoin (BTC) laws: a gist
There are various proposals stated by the law on how should the adoption of cryptocurrency be made. The procedure involves running a business and giving people the freedom of paying their taxes through bitcoin. The most significant thing is that it does not implement any capital taxes/gains on the bitcoin. The users will also be demanded by the country that they provide the alternatives to make the transactions in the bitcoin and converting them into the USD as if they wish without any trouble.
The bill will be active after 90 days after it is sanctioned by the president the next morning. The bill states that it is proposed to heighten the economic prestige of the country. The major benefit of this bill, the bill discloses, will be secured by the inhabitants as a whole.