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El Salvador Adopts Bitcoin as Legal Tender

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 El Salvador a country in Central America has become the first country to adopt Bitcoin as legal tender in the world after the bill was approved in Congress by receiving 62 of the 84 votes available.

A 90day period of implementation will now commence and this will include promoting " the necessary training and mechanisms so that the population can access bitcoin transactions."

Now every economic agent must accept Bitcoin as payment when offered to him by whoever acquires goods or service" - indicating that there's going to be some rather big changes for El Salvador's business community. One of the important bitcoin laws in the country shows.

El Salvador's president, Bukele also said he had ordered a state-owned geothermal electricity company to offer facilities for cryptocurrency mining, which would be powered by renewable resources from the local volcanoes.

Bitcoin's status as legal tender means that it will be treated exactly like the U.S. dollar is - and El Salvadorans who sell their crypto won't be subject to capital gains tax. However, the BTC/USD exchange rate will fluctuate in line with the free market.

Speaking to Nic Carter on Twitter spaces, president Bukele revealed that permanent residency will be offered to anyone who invests 3BTC into the country's economy and a special trust is going to be set up that will be able to instantly convert Bitcoin into dollars.

IMF Warns El Salvador of Risks Behind the Adoption of Bitcoin as Legal Tender

The International Monetary Fund(IMF) spokesperson Gerry Rice said on Thursday that  " adoption of bitcoin as legal tender raises several macroeconomic, financial, and legal issues that require very careful analysis, so we are following developments closely and will continue our consultation with authorities".

However, other analysts and Skeptics have cautioned that the move could throw El Salvador into further financial instability as bitcoin, as other cryptocurrencies remain precipitously volatile.

The comments from the IMF appear to mirror their concerns.



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