The President of El Salvador, Nuyib Bukule, has become a worldwide sensation after he announced that the country would be formally adopting Bitcoin as a legal tender. A few hours ago, the Bukule shared images and videos on his Twitter account talking about the 100% renewable Bitcoin mining powerhouse. The Central American country would be using the Volcano in the region to produce zero carbon emissions energy for powering its Bitcoin rigs.
Bukule told his followers that he had instructed the president of the LaGeo Company to come with a sustainable energy solution for Bitcoin mining. LaGeo is a state-owned electric generation and supply company. The team of engineers at LaGeo soon replied that they have dug up a new geothermal well that could produce around 95 Mega Watts green energy to power the crypto farming projects.
More Countries are Coming to Terms with Bitcoin Trading and Regulations after the Announcement of Salvador
Since Salvador has announced its aims to become the first country in the world to recognize Bitcoin as a legal tender, more countries have started to get in line with the crypto program. Salvador is one of the smallest countries in the region with rising inflation rates. According to the claims of President Bukule, If 1% of Bitcoin’s $685 billion market cap would flow into the country, it would improve their GDP by 25%.
Following the suit, other countries in Central America like Peru, Colombia, Panama, Mexico, and others are warming up to the idea of crypto adoption. In the same manner, Eastern countries like Iran and India have also softened their stance on cryptocurrencies and decided to introduce formal crypto-related laws under their jurisdiction.
Salvador Merchants would have 90 days to Start Using Bitcoin as Payment Collateral for Everyday Purchases
The Bitcoin bill presented in the unicameral legislative body of Parliament has been approved with a visible dominance. The bill would soon be written into law after the president’s approval. Once the bill is signed into law, it would become effective in the region within 90 days period. The local merchants would have to accept Bitcoin as a legitimate mode of payment for all goods and services. The government would also be able to accept taxes, fines, and licensing fees in crypto.
As per an independent survey, this would improve the economic conditions for locals. About 70% of Salvadorians do not have a bank account. In addition, it would also allow immigrants to salvage 20% in transfer fees that have been deducted by third-party organizations such as Western Union. Another benefit of Bitcoin legal tender is that it would be exempted from capital gains taxes.