El Salvador became the first country to give legal currency status to the Bitcoin cryptocurrency

 El Salvador became the first country to give legal currency status to the Bitcoin cryptocurrency

El Salvador This is the first country in the world. Which has given the status of legal currency to the Bitcoin cryptocurrency. And this is the first country in the world which has made a big step on the Cryptocurrency of the Central American country El Salvador.

There is a debate going on around the world regarding the legal framework of cryptocurrencies. And in such a situation, El-Salvador has now officially become the first country where transactions can be done in bitcoin cryptocurrency. El Salvador President Nayib Bukele has approved a bill to make cryptocurrency, bitcoin, the legal currency of the country.#LeyBitcoin. The US dollar will continue to be the legal curre you Ncy in the country as before and the use of bitcoin will be optional.

What is bitcoin?

Bitcoin is a type of digital currency, or crypto-currency, that enables instant payments. Bitcoin was introduced to the world in the year 2009. It is based on an open-source protocol and is not issued by any central authority.

Capital gains tax will not be levied on bitcoin

President Bukele announced that no capital gains tax would be levied on it once it became the legal currency of the country. Crypto entrepreneurs will be allowed to stay permanently in the country immediately. He said that the exchange rate between bitcoin and the US dollar would now be set independently. Prices can be reported in bitcoins. Transactions in bitcoin will not be subject to capital gains tax. Payments made in dollars can now be done in bitcoin as well.

President Nayib Bukele said that it will bring financial inclusion, investment, tourism, innovation and economic growth to our country. This move will open up financial services for the people of El Salvador. Salvadorans working abroad send a large number of currencies to their homes. According to World Bank data, in the year 2019, people sent a total of six billion dollars to the country.

The law to make Bitcoin a legal currency .will come into force in 90 days. According to the President of El Salvador, Nayib Bukele, on June 05, 2021, he said that he would soon introduce a bill in the country's Congress to make bitcoin a legal tender of the country. President Bukele announced on June 7 that no capital gains tax would be imposed on the country's legal currency once it became a legal currency.

Approval by how many votes

In El-Salvador's parliament, bitcoin was approved by a vote of 84 to 62. After this announcement by President Nayib Bukele, the price of bitcoin increased from $ 33,980 to $ 34,398.