The first country in the world to adopt Bitcoin as a legal currency

At a time when digital currencies, led by Bitcoin, are facing a lot of difficulties, especially in the recent period, after the uproar caused by Elon Musk’s tweets, which caused the depreciation of digital currencies, and doubt in political and economic circles about the danger of cryptocurrencies increases matters murky, but at the same time was announced as the first country in the world to adopt Bitcoin as a legal currency in an unprecedented move.

El Salvador, a small Central American country, announced its official adoption of the cryptocurrency Bitcoin as a legal currency in the country, according to what was indicated by international media, and this comes after the Salvadoran Congress approved the new bill with an overwhelming majority of 62 out of 84 votes, the new resolution In El Salvador, it reflected positively on the value of Bitcoin, as it rose after this decision by 5% to reach $34,239.

And we read in the text of the new law, “The law states that its purpose is to regulate bitcoins as a legal currency that is not restricted by the power of editing, and is unlimited in any transaction, and for any ownership required by natural or legal persons, public or private.” The law also states that the state “It will strengthen training and necessary mechanisms so that residents can access bitcoin transactions.” According to CNBC, prices can be displayed in bitcoin, tax contributions can be paid in digital currency, and bitcoin exchanges will not be subject to capital gains tax, knowing that the new law specifies the country’s main currency is the US dollar.

Reports indicate that 70 percent of Salvadorans do not have access to traditional financial services. The cryptocurrency Bitcoin and the new law to regulate it are seen as a way to increase financial inclusion.