El Salvador legislation encourages Bitcoin
Everyone knows that Tesla CEO announced "Tesla with Bitcoin" in March 2021 to boost his auto business. When he announced the offer Bitcoin saw a surge and reached the highest $60K in the crypto market. Bitcoin suffers with frequent lows after Elon Musk tweeted that Tesla had stopped accepting bitcoin to purchase its vehicles due to climate concerns in May month. However, concerns over the environmental impact of bitcoin mining and regulatory crackdown in China, the world’s biggest cryptocurrency, have tanked close to 50% from it's all-time high.
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Among all odds, El Salvador announced legislation in favor of cryptocurrencies. El Salvador government offers $30 free Bitcoins to boost cryptocurrency. El Salvador government put a red carpet for Crypto companies. The $30 promotion is the nation’s latest effort to push adoption of Bitcoin as legal currency. President Nayib Bukele offered $30 worth of Bitcoin to any citizen who signs up for a digital wallet. He is confident that his Bitcoin law will come into effect on September 07th. President Nayib Bukele has ruled out decreasing the value of traditional currency Salvadoran colón with Bitcoin law.
Payments for employees and others would continue in local currency but the government will leave the option to the people. The government has a plan to use the power derived from volcanoes to do mining of Bitcoin. Energy from volcanoes is 100% clean and renewable energy with 0% emissions. El Salvador President is confident that new Bitcoin legislation is made to generate new employment and investments. The crypto app could be used to make purchases at stores in Bitcoin or to take out dollars from certain ATMs. El Salvador is the only country in the world that will accept Bitcoin as legal tender.
The country relies mainly on remittances which takes 20% of the GDP. New legislation will made easy for the people who are living outside the country salvadorians living abroad to send the money to El Salvador. The Central American nations request the World Bank for technical help in implementing the Bitcoin as legal tender. But The World Bank has rejected a request from El Salvador to help with the implementation of Bitcoin as legal tender. The World Bank thinks like a lay man on some concerns over transparency and the environmental impact of Bitcoin mining.