In theory, you can use cryptocurrency to pay any fees in El Salvador.
After announcing this idea last week, President Nayib Bukele (Nayib Bukele) has He took it through A will was made in the Congress of the Republic of El Salvador with a pass rate of 62-22, making it the world’s first legal tender. Between 1892 and 2001, in Central American countries, the local currency was called Colon and was replaced by the US dollar by President Francisco Flores. Cryptocurrencies are now emerging as an alternative.
According to President Bukele, soon Bitcoin will have to be used in the country in exactly the same way as the U.S. dollar, so it must also be used to purchase goods and services and to pay taxes. At the time of payment, the recipient must calculate how much cryptocurrency it requests from the customer based on the current USD-Bitcoin exchange rate. In any case, there are loopholes in the law. If it proves that it is technically impossible to complete the transaction, the recipient can refuse to pay Bitcoin.
The President hopes that making Bitcoin the official currency can attract a large amount of investment into the country and provide digital banking services to a wide range of people. Currently, 70% of El Salvador’s 6.4 million people do not have a bank account, and 20% of the country’s GDP comes from remittances from foreign workers.
Critics of making Bitcoin a currency not only see the huge risk of the fragility of the cryptocurrency exchange rate, but are also skeptical about the extent to which Salvadorans have access to Bitcoin payment technology requirements (such as smartphones and the Internet).
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