'Bill to make Bitcoin legal tender' passed in El Salvador, mining plan using geothermal heat



The El Salvador parliament in Central America passed a bill on June 8, 2021 local time, in favor of adopting Bitcoin , a crypto asset (virtual currency), as legal tender. This makes El Salvador the first country in the world to adopt Bitcoin as legal tender, making it available for everyday shopping and tax payments.

El Salvador's Bitcoin Law: Full English Text | by Avik Roy | Jun, 2021 | FREOPP.org
https://freopp.org/el-salvadors-bitcoin-law-full-proposed-english-text-9a2153ad1d19

In a world first, El Salvador makes bitcoin legal tender | Reuters
https://www.reuters.com/world/americas/el-salvador-approves-first-law-bitcoin-legal-tender-2021-06-09/

El Salvador adopts bitcoin as legal tender after passing law
https://www.cnbc.com/2021/06/09/el-salvador-proposes-law-to-make-bitcoin-legal-tender.html

El Salvador's President Nayib Bukele announced in a video appearance at the event 'Bitcoin 2021' in the United States on June 4, 2021, 'Next week, we will submit a bill to make Bitcoin legal tender to Congress.' Did. He also mentioned that El Salvador has partnered with digital wallet company ZAP to build a financial infrastructure using Bitcoin.

El Salvador is expected to become the world's first country to adopt Bitcoin as legal tender-GIGAZINE



And on June 8th, local time, President Bukele tweeted that he submitted to Congress a 'bitcoin bill' that would adopt Bitcoin as legal tender.



Hours after the Bitcoin bill was submitted, President Bukele reported that the bill had passed with a majority of 62 out of 84 members. This makes El Salvador the first country in the world to adopt Bitcoin as legal tender.



The bill allows tax payments to be made in Bitcoin and requires businesses that provide goods and services to accept the use of Bitcoin, while the US dollar, which has long been the legal tender. Will continue to be used as legal tender. The country will provide a means for citizens to exchange US dollars for Bitcoin as needed, and will also promote the training necessary for citizens to access Bitcoin transactions.

In addition, the exchange rate between US dollars and Bitcoin is determined by the market, and even if you make a profit by exchanging US dollars and Bitcoin, you will not be taxed as capital gains. It is said that Bitcoin will actually be adopted as legal tender 90 days after the bill is promulgated in the official bulletin. President Bukele says it is up to the individual to use Bitcoin and does not pose a risk to the public.

Although the movement of El Salvador has attracted worldwide attention, no country has appeared to follow suit at the time of writing the article. Brandon Thomas, a partner at the advisory company Grayline Group , told Reuters, 'We don't know if this will be a trend and snowball, or if it's a momentary thing, until posterity. Commented. Richard Galvin, CEO of crypto fund Digital Asset Capital Management , said the crypto market is focusing on El Salvador, 'this will be an important catalyst for Bitcoin in the next few years. It could be. '

Immediately after it was discovered that El Salvador had adopted Bitcoin as legal tender, the price of Bitcoin rose by 5%. Bitcoin is also known to be extremely volatile compared to the US dollar, etc., and in April 2021 it reached a record high and 1 bitcoin exceeded 63,000 dollars (about 6.9 million yen). However, at the time of writing the article, it was about 37,000 dollars (about 4.05 million yen).



Behind the bill to make Bitcoin legal tender is the problem that 70% of people living in El Salvador do not have access to traditional financial services. By adopting the virtual currency Bitcoin as legal tender, it is expected that more citizens will be able to access financial services. In addition, the economy of El Salvador relies heavily on remittances by migrant workers overseas, and the total amount of remittances to El Salvador in 2019 is said to be 6 billion dollars (about 660 billion yen). 'Cryptocurrencies provide a fast and cheap way to send money across borders, in theory, without relying on the companies commonly used to send money abroad,' Reuters said.

In addition, President Buquere plans on Twitter to build a 'bitcoin mining facility with zero greenhouse gas emissions from 100% renewable energy using the geothermal heat of the volcano' for the president of LaGeo , a state-owned geothermal power company. Also announced that he was instructed to do so. The whole country has revealed its stance to embark on Bitcoin mining.



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