The country of El Salvador decided to officially recognize Bitcoin as a legal tender, following a bill being passed by the nation’s legislature, with 62 out of 84 members of said legislature voting “yes”. This decision, as it has become popular in modern times, was announced through a tweet by the president of El Salvador, Nayib Bukele, who proposed the bill to begin with.
According to the new bill:
-Bitcoin will be recognized as a legal tender and any capital gains taxes related to it will be removed
-Taxes can be paid in BTC, while the US dollar will be considered a “reference currency” from now on
-Economic companies in the country will have to accept BTC as a payment method. However, if they feel it’s too risky to keep their funds in BTC, the government can convert said funds into USD. The government also intends to maintain 150 million USD for such needs.
They also are considering legalizing BTC mining in the wake of China banning cryptos recently.
It’d be interesting to see what the outcome of this experiment will be.