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El Salvador is the first country to adopt Bitcoin as a legal currency


The El Salvadorian Congress approved a law converting bitcoin into legal currency, as it voted overwhelmingly in favor of the bitcoin law, in order to boost its economy, becoming the first country to adopt a cryptocurrency, which is used mainly as a haven for long-term value, according to the Spanish newspaper, “La Pangória”. .


The newspaper pointed out that the purpose of the bitcoin law is to regulate bitcoins as a legal currency, not restricted by editorial authority and unlimited in any transaction, and any bond requested by natural or legal persons from public or private as it reads part of Article 1 of the new regulations.


The law also states that the exchange between bitcoin and dollars will be freely established by the market and will not be subject to capital taxes like any legal tender.


The law regulates bitcoins as legal tender, which means that prices can be quoted in bitcoins, tax contributions can be paid in digital currency, and bitcoin exchanges will not be subject to capital gains tax.


The law also notes that an economic agent must accept bitcoin as a form of payment, when it is offered to him by someone receiving a good or service, and the bill will now be sent for his own acknowledgment to President Neb Böckel, who has already celebrated it on Twitter.


On the other hand, the law was opposed by some members of the opposition, and opposition deputy Rodrigo Avila noted during his plenary speech that Bitcoin is a “volatile monetary mechanism and its use generates a dangerous situation if relevant measures are not taken.” He also noted that in “several” countries, the use of cryptocurrencies, especially bitcoin, has been banned.


He added that bitcoin is "allowed in many countries but has not been formalized as legal tender, which is being done here without further analysis or due discussion."

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