Law recognizing bitcoin as a means of payment comes into force in El Salvador

Authorities have purchased 400 bitcoins and said they will buy more cryptocurrency in the near future

Law recognizing bitcoin as a means of payment comes into force in El Salvador

El Salvador’s President Naib Buquele announced the purchase of 400 bitcoins by the country’s authorities. The first transaction of 200 bitcoins was made yesterday, September 6, on the eve of the entry into force of the cryptocurrency legalization law. Buquelet stressed that brokers will soon purchase more bitcoins.

“El Salvador bought 200 new coins. We now hold 400 bitcoins,” Bukele wrote on his Twitter.

In early September, El Salvador’s Legislative Assembly Finance Commission approved a $150 million trust fund to support a plan to legalize bitcoin. Funds from the new fund will be used, among other things, to pay $30 in bitcoin bonuses that citizens will receive when they activate the state’s Chiva cryptocurrency wallet.

El Salvador passed a law in the summer recognizing bitcoin as an official means of payment alongside the U.S. dollar, already used as the country’s currency. Since September 7, prices in the country can be set in bitcoin, and taxes can also be paid in the cryptocurrency. Bitcoin exchanges are not subject to capital gains tax.

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