The president of El Salvador Nayib Bukele will submit a bill to its National Congress to approve Bitcoin’s status as a legal tender. This announcement has traveled the world and before its implications could be processed, other nation-states hinted at the possibility of adopting the Bitcoin Standard.
Yesterday June 6th, Carlos Antonio Rejala Helman, Paraguay’s Deputy of the Nation, changed his Twitter handle profile picture for one with laser eyes. A signal used for Bitcoiners to show support and their expectation that the price will reach $100,000. Rejala said:
As I said some time ago, our country needs to move forward hand in hand with the new generation. The time has come, our time. This week we start with an important project to innovate Paraguay in front of the world! The real to the moon. BTC and PayPal.
No further details have been provided by the government official or any other public instances. In 2020, PayPal launched its crypto services and allowed its U.S. customer to buy, sell, and send Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
The company has been more involved in the crypto industry and has progressively expanded its services based on cryptocurrencies with a checkout option. In the future, they will let their consumers withdrawal their holdings to their private wallets.
Paraguay could be amongst the first countries in the region to benefit from PayPal’s crypto services expansion. The company is rumored to allow its international clients to progressively trade with Bitcoin and the other cryptocurrencies in the platform. This is yet to be confirmed by PayPal.
A Bitcoin Migration To El Salvador?
In the meantime, Bukele has been announcing more details about its strategy to attract crypto entrepreneurs and investors. In response to a tweet from Justin Sun, the President of El Salvador said that there will be no capital gains tax for Bitcoin holders in the country; the cryptocurrency will have legal tender status.
In addition, the country will grant permanent citizenship to all crypto entrepreneurs. Stephan Livera, a partner at Bitcoiner Ventures and a host of the Stephan Livera Podcast, said that people interested in earning BTC for their work could seek remotes jobs in El Salvador. Thus, as Bukele expects, the local economy could receive a boost. Livera said:
El Salvador Bitcoin legal tender news might be a good opportunity for people to go work remotely from El Salvador and stack sats that won’t have capital gains tax on disposal…
The adoption of BTC by El Salvador is a major moment in the cryptocurrency’s history. The president of this country has had a controversial ruling. This has led Alex Gladstein, Chief Strategy Officer at the Humans Right Foundation, to wonder if there are hidden motives behind Bukele’s decision.
Is Bukele doing this purely for narcissistic self-promotion, knowing that pushing Bitcoin will make him much more famous internationally? Or does he understand the deeper implications of his country being a geopolitical first mover? Of being the Saylor of nation-states? (…) my take is that it doesn’t really matter. In the end, A will likely lead him to realize B.
At the time of writing, BTC trades at $36,056 with sideways movement in the daily and 7-day charts. BTC seems to be stuck at current levels and could take time for it to resume its rally or trend further downwards.