Voting 62 out of 84, the Congress of El Salvador has approved President Nayib Bukele's proposal to officially classify Bitcoin (BTC) as legal currency, becoming the first country in the world to formally adopt the cryptocurrency. In 90 days, Bitcoin will become legal tender in the nation, alongside the US dollar, and would mean that every business in El Salvador must accept Bitcoin for goods and services unless it is unable to provide the technology necessary for the transaction. Additionally, as Bitcoin has been deemed legal tender, tax contributions can also be paid with the cryptocurrency and exchange in Bitcoin will not be subject to capital gain taxes.
President Bukele said that the new legislation would "bring financial inclusion, investment, tourism, innovation, and economic development for our country", opening up financial services to about 70% of the nation's population who do not have bank accounts. He also said that the move would allow Salvadoreans living abroad to more easily send money home. Currently, about 20% of the nation's Gross Domestic Product (GDP) totaling the rough equivalent of about 4 billion United States dollars is made up of remittances.
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