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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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Bitcoin Now Legal Tender in El Salvador, First Nation to Adopt Cryptocurrency
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(Score: 5, Interesting) by Cyrix6x86 on Thursday June 10 2021, @12:52PM (2 children)
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 2021, @12:58PM
Careful, someone will mod you troll.
(Score: 2) by JoeMerchant on Thursday June 10 2021, @04:16PM
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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