The Legislative Assembly of El Salvador has passed a law declaring the Bitcoin like legal tender currency. The Bitcoin Law, this is the name given to the provision presented by the President Nayib Bukele, received 62 votes and consequently makes the acceptance of BTC mandatory throughout the national territory. With the sole exception of remote areas or people who do not have access to the means necessary to carry out electronic transactions. A law which makes the country a real center of attraction for the sector. Especially for companies currently operating in the United States, but not only.
Bitcoin Law: what the new law states
In addition to the declaration of Bitcoin as legal tender, with the obligation of acceptance throughout the national territory, Bitcoin Law puts the token created by Satoshi Nakamoto on par with the US dollar as a free use currency. Prices must therefore also be expressed in BTC, as well as in dollars.
And, again, it establishes that the exchange rate must fluctuate on the basis of what is established by the free market. In addition, the creation of a special fund in the Development Bank of El Salvador has been put in place to guarantee the immediate exchange between the two currencies.
Bitcoin trading will be tax free
Another very important part of the Bitcoin Law is that relating to financial transactions that see the use of Bitcoin, including trading. Which they will be completely tax-free.
A move full of consequences, as demonstrated by the reaction of Justin Sun. The founder of Tronin fact, he has expressly declared his intention to open a company headquarters in El Salvador. And it could just be the first in a real line of characters tied to crypto assets.
A prediction that is quite easy, in light of the increasingly widespread hostility of some countries towards digital money. Starting from United States, where just a few hours has ceased to live Coinseed. The cryptocurrency investment platform had in fact been sued by Letitia james, General Attorney of New York. The charge of defrauding customers for a million dollars was confirmed in court forcing the company to close. Not without a final taunt, in the form of a token named "FuckLetitiaJames".
El Salvador will offer instant residency to crypto entrepreneurs
Another move which demonstrates the intentions of Bukele, who recently appeared at the Bitcoin Conference 2021 held in Miami, is that relating to the immediate offer of residency to entrepreneurs in the cryptographic sector who intend to bring their business to the country. An intent that would result in the compression of bureaucratic procedures for anyone intending to set up a startup along the national territory.
It should be emphasized that those of the Salvadoran president do not appear as mere words in the wind. The political party he leads, the Grand Alliance for National Unity, has in fact achieved a very large result in the recent elections that have renewed the composition of Parliament. In which hour Bukele controls around 70%, with ample room for maneuver. Which it could take advantage of precisely to carry out a policy favorable to financial innovation. Such as to consequently make it a real point of reference for companies in the cryptographic space fleeing the United States.