El Salvador is the smallest or most densely populated country of the seven Central American countries. El Salvador became the first country to adopt bitcoin as legal tender and put it on its balance sheet. Bitcoin got 62 out of 84 votes for approval in the Salvador Parliament, and finally got the status of a legal tender. President Nayb Bukele gave this information to everyone from his Twitter. Shortly before the voting in Parliament, the President tweeted about the big step and said that with this big step, there will be financial inclusion, more investment, tourism, innovation, and economic development in our country.
Bukele called the passage of the bitcoin law a historic step. As soon as the law was passed, the price of bitcoin suddenly rose, it will take 90 days for the law to be fully implemented and after that, the transaction in bitcoin will start. Bukele made it clear that bitcoin would be a substitute for the public and that the dollar would continue to be used in the country as before. President Bukele said that once it became the legal currency of the country, no capital gains tax would be imposed on it. Crypto entrepreneurs immediately will be allowed to stay in the country permanently. The President of Salvador said that by making bitcoin a legal tender, it would be easier for Salvadoran citizens living abroad to send money home. This one step will open financial facilities for 70% of the people of the country who do not have a bank account.
You imagine that if this experiment of Salvador is successful, then it can make bitcoin legal tender in other countries as well. The government will promote this currency, for the first time, a citizen will be given a currency of $ 30, which will be recorded in the national ID of Salvador. Also, once it becomes legal currency, it will not attract capital gains tax. Payments in dollars in the country can now be done in bitcoin as well.
Many experts believe that to make bitcoin the official currency, economics agents should start taking payments in bitcoin. Because of this technology will get big, in many countries of the world, the courage of bitcoin and other cryptocurrencies increases. In India, its craze has also increased rapidly. The decision of the RBI to ban cryptocurrencies in the country was overruled by the Supreme Court of the country. President of Salvador said, for the first time, many countrymen will have access to bank services. At the same time, there will be a savings of $ 400 million in fees on remittance funds sent home every year from abroad. Some experts believe that the decision is too complex and opaque. He explained that his government had bought its first 400 bitcoins. He talked about buying more coins. According to the cryptocurrency exchange app Gemini, these 400 bitcoins were trading at a value of $21 million.
According to a survey by Central American University, many people in Salvador are opposed to the legal tender of bitcoin and many people are still not aware of its use, due to which they do not trust it. Some people are also protesting because of being bitcoin legal. In June, Salvador’s parliament passed a law that says cryptocurrencies will now be legal tender and can be used for goods or services, just like the US dollar.
Ukraine has also set out to legalize bitcoin, with Ukraine’s parliament passing a law that legalizes and regulates the cryptocurrency bitcoin in the country. Ukraine has legalized bitcoin. Earlier this bill was drafted in 2020, at that time total of Ukraine MP 276 supported it and 6 opposed it. The main purpose is to clarify their perspective on cryptocurrencies and to protect the buyers of bitcoins, as previously bitcoin was neither legal nor illegal in the country. According to a Kyiv post, even though it was not illegal in Ukraine, Ukrainian law enforcement agencies considered bitcoin and other cryptocurrencies to be scams, and many bitcoin businesses dealing with it were raided.
Now that the bill has been passed, the court will now protect all people and businesses, as the bill allows businesses related to the bitcoin cryptocurrency to be carried out inside official counters. However, the law also provides some guidelines for how Ukraine may attempt to further regulate bitcoin in the future. The bill allows citizens to buy and trade bitcoin and other cryptocurrencies on exchanges. The bill also clarifies wallet and private keys.
According to a Ministry of Digital Transformation spokesperson who spoke to the Kyiv Post, parliament is expected to pass an officially “open market” for businesses and investors and make changes to its tax and civil code before the end of the year. It is also important to note that even though bitcoin is legal in the country, this does not mean that BTC is legal tender in the country. Ukraine has become the 5th country in the world to set some basic rules and guidelines for the cryptocurrency market.
