[ad_1]
A majority of 62 of the 84 lawmakers approved the bill, which was proposed by President Bukele last week.
El Salvador has accepted it a proposal At the hands of President Nayib Bukele, for a law to legally classify Bitcoin, making the Central American nation the first in the world.
Most lawmakers voted in favor of the initiative to create a law that would formally receive the cryptocurrency late Tuesday, despite concerns about the impact El Salvador could have on its program with the International Monetary Fund.
“It has just been approved by a qualified majority in the #BitcoinLaw” legislative assembly, President Nayib Bukele tweeted after the assembly vote.
With 62 votes, it is approved by the legislature #LeyBitcoin with which El Salvador #Bitcoin as a legal tender.
¡#LaNuevaAssemblea keep making history! pic.twitter.com/Ur9OQzPvYI
– Parliamentary Assembly (@AsambleSV) June 9, 2021
Translation: With 62 votes, the legislative plenary approves #LeyBitcoin [that allows] Salvador to adopt #Bitcoin as a legal tender. #Thenewassembly continues to make history! A parliamentary tweet said.
Bukel noted the use of Bitcoin to help Salvadorans living abroad send home shipments, saying the U.S. dollar will also remain legal tender.
“Our country will bring financial inclusion, investment, tourism, innovation and economic development,” Bukel said in a tweet before the vote.
He added that using Bitcoin, which will be an optional use, would not pose a risk to users. Use as legal tender will be included within 90 days.
“The government will ensure convertibility to a specific dollar value at the time of each transaction,” Bukel said.
El Salvador’s dollarized economy is based on money sent by citizens working abroad.
World Bank data sent nearly $ 6 billion in 2019, about one-fifth of GDP in 2019, one of the highest ratios in the world.
Experts say the change in Bitcoin could complicate talks with the IMF, as El Salvador is looking for more than a billion-dollar program.
Alina Carare, head of the NDF mission in El Salvador, said on Monday that the fund “monitors the news and will have more information while we continue to consult with the authorities.”
Carlos de Sousa, portfolio manager at Vontobel Asset Management, said the Bitcoin push looked bad for Bukele potentially shooting himself up making it more difficult to raise tax revenues.
“Cryptocurrencies in general are a very easy way to avoid taxation and a very easy way to avoid the authorities because the system is completely decentralized, you can do money laundering, avoid tax and so on,” he said.
It’s a cryptocurrency digital form of money can be used to pay for some transactions online.
As with “real” currencies, a Bitcoin can be owned by 10 or millions. Unlike real currencies, cryptocurrencies are only online and are not backed by governments or central banks.
Cryptography devotees say currencies represent the economy of the future. But ultimately, their value depends on the limited supply and the number of people behind them.
The cryptocurrency market reached more than $ 2.5 trillion in mid-May last year, according to the CoinMarketCap page, driven by the interests of more and more serious investors from Wall Street to Silicon Valley.
But the volatility currency — currently priced at $ 36,127 — and its obscure legal status have raised doubts about whether it can ever replace a trusted currency in day-to-day transactions.
[ad_2]
Source link
