One extremely important event in the history of finance and crypto, happened on June 5th, at the biggest ever Bitcoin conference in Miami! The President of El Salvador Nayib Bukele confirmed that citizens won’t pay capital gains tax on Bitcoin because it is now a country’s LEGAL currency!
In one of his tweets, he announces that the country is in the process of adopting bitcoin as legal tender.
Despite El Salvador’s small size, Bukele’s effort is already bringing huge historical changes, major crypto thought leaders are packing their bags to go there!
Jack Mallers, who helped build the Lightning Network, has been working with Bukele to make bitcoin a practical way of exchange for everyday purchases.
Adam Back is contributing technologies like Liquid and satellite infrastructure to help Salvadorans connect to the internet, and thereby to the Bitcoin network, in places where land-based connectivity is poor.
Hell, even I personally visited el Salvador in July 2021!
This legislative proposal is a way to “design a country for the future.” It states that that “central banks (like the U.S. Federal Reserve) are taking more and more actions that cause harm to the economic stability of El Salvador… So in order to reduce the negative impact of central banks, it apparently became really necessary to authorize the circulation of a digital currency with a supply that cannot be controlled by any central authority.
The supply of bitcoin is limited to 21 million units, making it immune to the types of policy changes that affect the Euro, Dollar, and other “fiat” currencies.
Did you know that 70 % of Salvadorans lack bank accounts? Since people can transmit bitcoin through their smartphones, without the need for a bank account, the move to make Bitcoin legal tender could help achieve the “moral imperative” of financial inclusion and provide many new opportunities to people.
The president pointed out that if 1% of the world’s bitcoin moved to El Salvador, it would come to a quarter of the country’s annual economic output.
So now – How many crypto entrepreneurs, you think, will move to El Salvador and get that residency?
Latin América is generally very supportive of crypto! Hope this “acceptance” will spread more around the globe!
El Salvador gives away free bitcoin to its citizens!!
El Salvador’s groundbreaking bitcoin adoption will come to its full power 9th of September this year and Bitcoin will officially become a legal tender! So the country is making some preparations…
El Salvador’s president Nayib Bukele offered $30 worth of Bitcoin to any citizen who signs up for a digital wallet Chivo!! – which is slang for “cool”.
The Bitcoin wallet is being created by the government in El Salvador, designed for holding both BTC and US dollar.
As simple as that – in historical and commercial centres they will open Chivo registration points and the funds will be deposited into the account of any citizen who downloads it and registers as a user with their phone and ID number, commission-free!
It is only one of many wallets that can be used, of course, it is supposed to be fully compatible with other wallets.
Cash withdrawal can be done at the physical branches … and at bitcoin ATMs.