[ad_1]
The price of the world’s most popular cryptocurrency had fallen to $ 31,017 by 4:15 p.m. on Tuesday. But Bitcoin’s value has since climbed 10.6% to $ 34,312. During the same period, Ethereum jumped 9.6%, from $ 2,310 to $ 2,533. The Dogecoin coin climbed 11.1% from $ 0.297 to $ 0.329.
Salvadoran congressional ministers voted by a “qualified majority” in favor of the Bitcoin law, which received 62 votes out of a possible 84.
Prices in the Central American country can now be displayed in Bitcoin, while tax contributions can be paid with digital currency.
Trading in cryptocurrency will also not be subject to capital gains tax.
However, it is still unclear exactly how El Salvador will roll out Bitcoin as legal tender in the country.
The proposal has yet to go through El Salvador’s legislative process before being passed into law.
The law adopted in the country by the ministers reads as follows: “The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and in any capacity that natural persons or public or private legal entities require.
El Salvador’s current official currency is the US dollar, and the bill states that the exchange rate with the currency “shall be freely established by the market.”
The law adds that the state “will promote the training and mechanisms necessary for the population to access bitcoin transactions.”
Salvadoran President Nayib Bukele previously sent the law to the country’s Congress to kick off the voting process.
It came days after he announced that the Central American nation had partnered with digital wallet company Strike to build El Salvador’s modern financial infrastructure using Bitcoin technology.
The price of Bitcoin has halved after hitting an all-time high in mid-April, and has yet to show any signs of a sustained recovery.
Earlier this week, the price of the cryptocurrency fell further after Donald Trump said he viewed it as a “scam” affecting the value of the U.S. dollar.
The former US president told Fox Business: “Bitcoin looks like a scam.
“I don’t like it because it’s another currency that competes with the dollar.”
Mr. Trump added that he wanted the dollar to be the “currency of the world”.
Mr. Trump has already spoken out against Bitcoin, which tends to fluctuate wildly when prominent people comment on it.
In 2019, the cryptocurrency plunged to around $ 20,000 after saying it was “not a fan” of it and competing with digital currencies.
In a Twitter post, from which he has now been banned, the former US president claimed that crypto assets could “facilitate illegal behavior, including drug trafficking and other illegal activities.”
THIS IS A STORY OF BREAKTHROUGH. MORE SOON…
[ad_2]
picture credit