El Salvador has become the first country to legalize the cryptocurrency bitcoin. Till now no country had made it its legal currency. El Salvador has now officially become the first country where bitcoin will be recognized as a legal currency for any transaction. In El-Salvador’s parliament, bitcoin was approved by a vote of 84 to 62. President Nayib Bukele gave this information by tweeting. After this announcement, the price of bitcoin increased from $ 33.98 to $ 34,398.
Prices can now be reported in bitcoin
President Bukele announced on Monday 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. After this announcement by the President, property inquiries in El Salvador increased. He wrote in his tweet that the exchange rate between bitcoin and the US dollar will 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.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
– Are You Watching ???????? (@b) June 9, 2021
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Many investors said, wonderful decision
Reacting to this law, Silicon Valley angel investor Balaji Srinivas said that it is a wonderful decision. Now all those economic agents should start taking payments in bitcoins, which are technology capable. Cryptocurrencies around the world have seen a lot of momentum recently. It has created a lot of interest among investors in many countries of the world including India. The Supreme Court rejected the RBI’s decision to ban cryptocurrencies in India.