El Salvador has become the world’s first country to accept bitcoin as legal tender. Such a law was adopted by the Congress of the country.
Sixty-two of 84 lawmakers voted in favor of making the cryptocurrency a means of payment. “The purpose of this law is to regulate bitcoin as legal tender, not to restrict any transactions with it that are required by government, individuals or entities,” the law states.
Prices can now be set in bitcoin, tax contributions can be paid in the digital currency, and bitcoin exchanges will not be subject to capital gains tax. According to the law, the exchange rate to the dollar “will be freely set by the market.” The state also intends to “promote the necessary training and mechanisms to enable the public to access bitcoin transactions.”
Earlier, President Nayib Bukele said that such a measure would create new jobs in the country in the shortest time possible and help provide access to financial investments for many people.