A total of 62 out of 84 lawmakers approved the bill, which President Bukele presented last week.
El Salvador has agreed idea from President Nayib Bukele to make the law mandatory for Bitcoin, making Central America the first in the world to do so.
Many lawmakers voted in favor of Tuesday’s decision to pass a law that would legalize cryptocurrency, despite concerns about the El Salvador program and the International Monetary Fund.
“#BitcoinLaw has just been approved by a number of qualified people” in the parliamentary session, President Nayib Bukele sent a statement after voting on the conference.
– Parliament (@AsambleSV) June 9, 2021
Interpretation: With 62 votes, the entire legislature endorses #LeyBitcoin [that allows] El Salvador adopted #Bitcoin as a legitimate currency. #Thenewassembly continues to make history,! a tweet from Parliament said.
Bukele said using Bitcoin was possible to enable Salvadorans living abroad to send money back home while saying that the US dollar would continue to be a legitimate currency.
“It will bring money, money, tourism, innovation and economic development to our country,” Bukele said in a recent tweet.
He also said that using Bitcoin, where use can be optional, will not cause problems for users. Its valid use will be valid for 90 days.
“The government will ensure a transition to the same value of dollars at this time,” Bukele said.
El Salvador’s economic situation depends on the amount of money it returns from foreign nationals.
World Bank data show that remittances amount to about $ 6bn, about one-fifth of GDP, in 2019, one of the highest in the world.
Experts say the move to Bitcoin could jeopardize talks with the IMF, with El Salvador seeking more than $ 1bn.
The head of the IMF in El Salvador, Alina Carare, said Monday at the end of Monday that the fund “is following the story and will have more as we continue to negotiate with officials.”
Carlos de Sousa, a history manager at Vontobel Asset Management, said the push for Bitcoin looks bad with Bukele’s ability to kick himself in the face making tax evasion difficult.
“All cryptocurrencies are an easy way to get taxes and an easy way to avoid regulators because they are a completely blessed way, you can save money, you can avoid taxes and much more,” he said.
The cryptocurrency currency is a kind of digital currency which can be used to pay for other online activities.
As a “real” currency, one, 10, or millions of Bitcoins can be his. Unlike real money, cryptocurrencies are only available online and are not sponsored by the government or the central bank.
Crypto worshipers say the money represents future assets. But in the end, their value depends on their size and the number of people who run after them.
The cryptocurrency market grew to $ 2.5 trillion in mid-May last year, according to the CoinMarketCap page, driven by interest from the fastest growing from Wall Street to Silicon Valley.
But financial instability – currently valued at $ 36,127 – and its legal status have raised questions about whether it could replace fiat money in day-to-day operations.