In June, El Salvador made crypto history when Congress approved President Nayib Bukele’s proposal to legalize Bitcoin as a currency.
They will use Bitcoin alongside the U.S. dollar as legal currency. Every business should accept bitcoin as a form of payment unless they lack the technology to process the transactions.
Millions of Salvadoreans live and work outside the country, but they still send money home, contributing 20% to the country’s GDP. Transferring money can take days, and with high transaction fees, citizens and business owners welcome the move to use Bitcoin as legal currency.
How is El Salvador’s government impacted?
El Salvador’s seeking a $1 billion aid program from the International Monetary Fund, and experts feel this move to legalize bitcoin could complicate discussions with the IMF. Critics also feel this was a wrong move by President Bukele since Bitcoin is decentralized and could lead to tax evasion and possible money laundering activities.
Another worrying factor is the volatility of the Bitcoin price and the high frequency of its volatility which is not normal for a country’s currency, something that would concern any government.
How does this impact BTC’s price?
In the past, the price of Bitcoin dropped by 8% in reaction to Donald Trump’s statement that cryptocurrency is a ‘scam’, proving how volatile it is and the influence prominent global leaders’ remarks has on the market.
The passing of this law by El Salvador’s Congress seems to have been good news for the price of Bitcoin. BTC price jumped by 6% a day after the news broke, crossing $37000.
And if other countries follow this path, it could have similar effects on the price of Bitcoin.
How to benefit from this move?
These events open opportunities for people to take advantage of trading cryptocurrencies. To do so, you need to find a broker that is compatible with the industry.
Star Capital is a cryptocurrency broker which believes digital currencies are the future and wants to allow any person to access trading.
Their offerings include providing you with an account manager to guide you and equip you with the right tools. Trading is made possible via their web-based trading platform, which is designed with speed and efficiency. Due to the web-based functionality, you can trade from any device without needing to download an application.
Star Capital offers customer support 24 hours, six days a week; customers can reach them via email or live chat service.
They have a transparent withdrawal policy and allow funds to be transferred through crypto wallet, debit card, or bank wire.
Bottom Line
This move by El Salvador is proof that they believe there is a future in cryptocurrencies and that it has many benefits to the broader public. Traders can take advantage of the opportunities created in the market by joining a broker like Star Capital to advance their trading skills. Star Capital has the vision to allow everyone to trade. This is evident in the benefits they offer, making them a reliable broker to start your crypto trading journey.
