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Saturday, February 4, 2023

El Salvador Evolves Crypto Strategy

El Salvador’s government has long been footing the bill for electricity access in rural areas, but a new bill could change that. The law was approved by the El Salvadorian government, which made it legal to buy and sell goods and services with cryptocurrency in the country. In addition to the cryptocurrency law, this bill also provides that electricity is a public service.

The Bitcoin Law was approved by the El Salvadorian government, which made it legal to buy and sell goods and services with cryptocurrency in the country.

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The law was approved in 2022

The law decriminalized the use of cryptocurrencies such as Bitcoin. It made it legal to buy and sell goods and services with cryptocurrency in El Salvador, as well as legalizing mining operations and holding digital assets.

El Salvador 2022 Strategy

This marks a significant change from 2017 when cryptocurrencies were considered illegal tender in the country, punishable by up to 12 years in prison for trading or owning them.

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The new law also provides an exemption from capital gains taxes on cryptocurrency investments held for at least one year (though this doesn’t apply during short-term trading).

In addition to the cryptocurrency law, this bill also provides that electricity is a public service. This means that state-owned companies will manage energy distribution and transmission while municipalities and private companies can participate in electricity production.

According to El Salvador’s Ministry of Finance (Minfin), this bill will help increase tax revenues and open up new industries such as mining farms in El Salvador. It will make it easier for the government to provide citizens with cheaper and better-quality energy by maximizing the use of solar power.

While the bill has not been passed yet, it suggests that El Salvador will become one of the first countries in Latin America to recognize Bitcoin as a form of payment. The government hopes this can help them provide electricity to the people who do not have access to electricity or pay high prices for this service. At the same time, they can sell excess supply on the market to subsidize their work in remote villages.

In addition, this bill will help increase tax revenues and open up new industries such as mining farms in El Salvador. It is believed that when miners start using renewable energy sources, it will reduce costs by about 50%.

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