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posted by martyb on Thursday June 10, @07:35AM   Printer-friendly
from the [bit]coin-of-the-realm? dept.

Bitcoin now legal tender in El Salvador, first nation to adopt cryptocurrency:

On Wednesday, El Salvador’s president signed into law a proposal to adopt bitcoin as legal tender, making the Central American nation the first in the world to officially use the cryptocurrency.

The new law says that companies must accept bitcoin as a form of payment, and the government will allow people to pay taxes with it as well. The exchange rate with the dollar will be set by the market, and exchanges from dollars to bitcoin won’t be subject to capital gains tax. The law was passed by a supermajority vote of the legislature, with 62 of 84 deputies assenting.


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  • (Score: 3, Insightful) by PinkyGigglebrain on Thursday June 10, @08:06AM (10 children)

    by PinkyGigglebrain (4458) on Thursday June 10, @08:06AM (#1143830)

    This will be rescinded by the current government or there will be a revolution or coupe in El Salvador within the next 6-9 months and then it will be rescinded by the new government..

    The banks hates currencies they don't control.

    biased and some climas can be argued but has some interesting information about banks [youtube.com]

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  • (Score: 2, Flamebait) by crafoo on Thursday June 10, @10:50AM (1 child)

    by crafoo (6639) on Thursday June 10, @10:50AM (#1143844)

    Yeah. The "international bankers" are going to come down on this hard and punish those responsible. Probably through some proxy state action.

  • (Score: 1) by khallow on Thursday June 10, @11:46AM (2 children)

    by khallow (3766) Subscriber Badge on Thursday June 10, @11:46AM (#1143850) Journal
    The vast majority of banks by assets controlled don't control any currency. And perhaps this will help us get past the myth that countries will get invaded for not using the petrodollar.
    • (Score: -1, Flamebait) by Anonymous Coward on Thursday June 10, @12:57PM

      by Anonymous Coward on Thursday June 10, @12:57PM (#1143864)

      Get past the myth of bankers (Jews) being behind the invasions at least. Banks and monetary policy are just another tool, they can be used to make war as well as peace. The petrodollar stuff is just another political delineation, a financial signal of alignment.

    • (Score: 2) by mcgrew on Thursday June 10, @04:43PM

      by mcgrew (701) <publish@mcgrewbooks.com> on Thursday June 10, @04:43PM (#1143935) Homepage Journal

      The vast majority of banks by assets controlled don't control any currency.

      I could not parse that sentence, could you reword it?

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  • (Score: 4, Interesting) by TheRaven on Thursday June 10, @12:09PM (1 child)

    by TheRaven (270) on Thursday June 10, @12:09PM (#1143852) Journal

    I doubt the banks need to do anything. At present, the BitCon network can handle about five transactions per second and the way that the system is designed means that the computational cost of transactions increases over time. Five transactions per second *might* be enough for El Salvador, especially if it's a publicity stunt and hardly anyone actually bothers. If it gets any kind of traction then people are going to complain that it doesn't work when they try to use it.

    That's ignoring the fact that the volatility of the exchange rate means that any merchant who accepts BitCon will want to put the BitCon price at about double the fiat-currency price to avoid making a loss. If the law doesn't allow this then as soon as businesses start suffering from accidentally selling things at below cost because the value of the 'money' that was spent dropped significantly between the sale and conversion then you'll see mass protests from shopkeepers.

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    • (Score: 0) by Anonymous Coward on Thursday June 10, @12:16PM

      by Anonymous Coward on Thursday June 10, @12:16PM (#1143856)

      These problems have already been solved, do a bit of research into this story. Look up strike. The level of dunning kruger in this thread is stunning.

  • (Score: 5, Interesting) by Cyrix6x86 on Thursday June 10, @12:52PM (2 children)

    by Cyrix6x86 (13569) Subscriber Badge on Thursday June 10, @12:52PM (#1143862)

    A government that makes a sudden crypto or e-currency move like this, is a government that was already on the ropes. This is a way for the regime to funnel money (typically stolen from taxpayers) into their nest eggs before they leave, or are forced out.

    It is likely the authoritarian government is setting up golden parachutes so they can make their escape to small chateaus in Western Europe. This law makes it possible to move millions without a conversion rate or capital gains taxes. Those stipulations make it fairly obvious to see who it will benefit and protect. Wealthy people who have no intention of staying.

    This isn't the first time that a corrupt government has set up a crypto or r-currency for the purpose of escaping the hell hole they created. It is just the first time that Bitcoin was chosen as that method of laundering. Lessons learned from the last time it happened (Ecuador 2017), when the outgoing President set up his own crypto currency and then millions were stolen from the wallet overnight by savvy hackers. It's newsworthy in that it's Bitcoin being used this time, and more people are paying attention because they are still riding the bubble, but the end result will be the same. There is nothing revolutionary happening here. The only revolution will come when the people of El Salvador overthrow the current regime.

    • (Score: 0) by Anonymous Coward on Thursday June 10, @12:58PM

      by Anonymous Coward on Thursday June 10, @12:58PM (#1143865)

      Careful, someone will mod you troll.

    • (Score: 2) by JoeMerchant on Thursday June 10, @04:16PM

      by JoeMerchant (3937) on Thursday June 10, @04:16PM (#1143919)

      A government that makes a sudden crypto or e-currency move like this, is a government that was already on the ropes.

      Like the city of Miami?

      They say BTC gains won't be taxed as capital gains, I guess that also means that BTC losses will not be deductable?

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