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Bitcoin becomes official fiat currency in El Salvador


Bill passed, El Salvador

The bill submitted by President Nayib Bukele of the Republic of El Salvador to Parliament today to adopt the cryptocurrency Bitcoin (BTC) as the national legal tender has been passed by the majority.

Prior to the vote, the “Financial Commission” had previously shown favor for the president’s bill, and it was also indicated that support would be overwhelming and passed within the party (GANA).

After passing, the law will come into effect 90 days later. The main contents of the law are as follows.

  • Products can be priced in Bitcoin units
  • Tax payment is possible with Bitcoin
  • Bitcoin transactions are not subject to capital gains tax
  • Bitcoin reference price remains in US dollars
  • All economic agents (such as the service industry) must accept Bitcoin payments as a means of payment when offered by consumers.

The government says it will set up an investment trust at the El Salvador Development Bank Bandesal to provide citizens with the means to instantly convert it into US dollars. According to the president’s participation in Twitter Space, the new investment trust will use US $ 150 million (16 billion yen) to buy Bitcoin.

The passage of the bill is a historic move. In 2001, El Salvador abolished the circulation of its unstable legal tender “colón” and adopted the US dollar (USD) as the only legal tender (legal tender). It will be noticed how is used in parallel with the dollar.

Summary of remarks

Officials such as President Bukele attended the Twitter space during the parliament and answered questions from prominent Bitcoiners such as Jack Dorsey. The following is a part of the contents.

From now on, it will be expressed in BTC instead of USD. Encourage BTC to familiarize people with it. Promote to investors and entrepreneurs. Build a better infrastructure. Create a new decree to promote this decision.

It will attract many innovators and talents. This isn’t all about money. This new technology will be a good move for humankind, not just in the United States, but throughout the world, including access to finance.

I believe in the future. I dreamed of the future that technology would bring. A world free of poverty and illness. But now, even with 20 cars, when I hear about the future, flying cars are not shining buildings, but destructive. .. .. .. It’s not a beautiful thing, it’s a dystopian way of thinking.

As the world’s central cryptocurrency, BTC is decentralized, equal and uncontrolled by banks. BTC is clearly designed for future technology and philosophy. Foster innovation and talent. We want to not only support but also show the direction in which the world will generate profits.

We support this as a whole. If we set a precedent, other countries may follow. The number of cases of using BTC as legal tender should increase. I want to make this project a success. As a result, a stronger system will spread as a domino effect.

Manerons and crimes are committed in USD, not BTC. The problem is not the currency, but the criminals.

It has a good relationship with the US Federal Reserve. The problem is not there. It’s simpler. Establish investment trusts not only at our central bank but also at development banks. Therefore, transactions etc. are managed.

… People don’t have to take the risks associated with BTC. Investment trusts manage the increase and decrease, but the purpose is not to make profits, but to support BTC as legal tender.

There are no plans for mining, but we are considering measures to promote it in Japan. It is also an idea to promote it by using clean energy that uses the geothermal heat of the volcano. It also aims to encourage investment in factories or carbon footprints. Some people may want to build a mining factory because the cost of using energy and setting up a factory is low.


Author: Lewis Kikutani

Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”

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