We commented a couple of days ago that the president of the state of El Salvador would be proposing a law to the Parliament to make bitcoin accepted as a legal means of payment in the republic.

In a bit of a surprise, due to the immediate timing of the approval of the presidential decree that took place with 74% of the votes, the Parliament of El Salvador has made the law making bitcoin a legally valid currency in the country effective.

The small and certainly not rich Central American state, officially becomes the first to recognize the cryptocurrency queen of the market as currency in all respects, which will not replace the US dollar, but to support it.

Bitcoin in the country will have forced course, effectively forcing everyone to accept it as a means of payment.

We’re talking about a historical event that can only produce cascading effects for the crypto sector, which is now more than credited by a State that gives BTC the same dignity of the dollar.

The example of El Salvador has woken up from the torpor and reawakened enthusiasm also for surrounding countries such as Paraguay that has already hinted at a manifestation of will in this sense.

Among the reasons that led President Bukele to propose the Law, have contributed the fact that 70% of the population does not have access to financial services.
The introduction of bitcoin could respond to the need to reduce this high percentage, but above all attract individuals and legal entities in possession of bitcoin that, encouraged by the fact that in the country will not have to pay taxes on capital gains, could decide to settle in the tax haven for crypto-investors and spend in the country the digital currency that will be accepted by everyone, no one excluded. By law!

LEARN MORE : El Salvador Makes History As World’s First Country To Make Bitcoin Legal Tender