El Salvador is attempting to become the first nation to use bitcoin as legal tender.
President Nayib Bukele announced that he would submit a bill to the Salvadoran legislature — which his “Nuevas Ideas” party presently controls — to make the cryptocurrency a valid medium of exchange in the small Central American nation.
As a cryptocurrency, bitcoin is neither managed by a central government nor tethered to a commodity such as gold or silver. It is transmitted digitally and protected from counterfeiting via encryption.
“Next week, I will send to Congress a bill that will make bitcoin a legal tender in El Salvador,” said Bukele in a video debuted at the Bitcoin 2021 conference in Miami. “This will generate jobs and help provide financial inclusion to thousands outside the formal economy.”
— Nayib Bukele 🇸🇻 (@nayibbukele) June 5, 2021
Bukele later announced that the nation would not charge capital gains taxes on bitcoin and offer “immediate permanent residence