On June 5th, 2021 El Salvador’s President, Nayib Bukele declared to the world that his country would accept bitcoin as legal tender. Just days later on June 9th El Salvador’s congress overwhelmingly approved of Bukele’s bill and signed it into law with a super majority vote. The “Bitcoin Law” is slated to take effect on September 7th, 2021.
President Bukele had announced that over 70% of Salvadorans do not have access to bank accounts, or any financial services for that matter. He is hopeful that by legalizing Bitcoin as a form of currency for El Salvador, it will help generate jobs and foster financial stability for thousands of citizens.
So – What Next?
President Bukele from El Salvador is confident in Bitcoin’s trend patterns. So much so, that he is willing to allow his citizens to use Bitcoin as a legal tender for all transactions within El Salvador. If the IMF and the World Bank accept this Bitcoin Law, this will make Bitcoin a “foreign currency” thereby eliminating capital gains tax on bitcoin in other countries. This may be the most substantial development legitimizing bitcoin in history. Legislators from several other countries, including Mexico, Panama, and Paraguay are already submitting similar bills for debate.
Of course, challenging the status quo with a new freedom enabling type of money comes with growing pains. In this case, the IMF has made it clear it is not happy about El Salvador’s decision. “Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis,” said Gerry Rice, an IMF spokesman. When considering this comment comes from the global central bank who has maintained a monopoly on the creation and distribution of money for decades, one must ask whether they are an impartial party, or if they are even entitled to any jurisdiction over such decisions of a sovereign nation.
Although the price of bitcoin has fluctuated over the last few months in particular, many analysts agree that by the end of 2021 it will reach $100,000. That being said, trends are not always 100% accurate. There are many other determinant factors that could change its course. But since we are not focusing on the “what ifs,” let’s address what the next steps in the plan of action will look like.
Taking the leap of faith is always the most difficult part of starting anything new. Global support for bitcoin is growing more robust, distributed, and diversified. Market trends, industrial and cultural developments and regulatory clarity are converging in favor of Bitcoin, it seems as though making an investment now would be a prudent strategy with minimal risk and very promising upside reward.
There is no better time to be highly advised in favor of investing, contact Luxolo Financial today to talk to an expert about why making an investment would be right for you. Don’t be late to the trend, invest in Bitcoin today so that you can benefit from the massive influx of global wealth into this revolutionary technology. Call us at (207) 298-2085.