Few days after his Miami 2021 Bitcoin Conference announcement, El Salvador President Nayib Bukele secured what he referred to as a “supermajority” 62 out of 84 votes in the Salvadorian Congress to officially make bitcoin a legal tender in the country.

In just 90 days, the Central American nation with a population of 6.5 million will have a digital currency that’s legally accepted following the historical development.

The bill has already been published in the Official Gazette, implying the countdown has already started for its promulgation. Experts say the country’s president seems to be in a hurry, expediting the process of a very important decision that was only announced last week.

Key points of the bill

The law contains some clauses that may be surprising for many traditional economists, such as “prices may be expressed in bitcoin.”

In addition, both citizens and residents can use the largest cryptocurrency by market capitalization to pay taxes, and transactions involving it won’t incur capital gains tax.

Meanwhile, for purposes of systematic accounting, the US dollar will be utilized as the official reference currency.

Following this momentous event, bitcoin-related stories came aplenty in the country’s media, occupying multiple front-page stories in leading local outfits such as ElSalvador.com, which publishes the top-selling print paper El Diario de Hoy.

Expressing some concerns

It appears not everyone in El Salvador shares their president’s enthusiasm with regards to what is now being called as “bitcoin revolution.”

Central Reserve Bank Head Douglas Rodriguez said the cryptocurrency already exhibited quite high volatility but was also quick to say the greenback is not immune to the same trend.

“BTC volatility does exist. There is quite high volatility, but that also happens even with the dollar. Even the best cryptocurrencies experience volatility,” he said.

Image courtesy of Cointelegraph News/YouTube

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Source: https://bitcoinerx.com/blockchain/bitcoin-now-an-official-legal-tender-in-el-salvador/