El Salvador Becomes First Country to make Bitcoin Legal Currency

El Salvador has become the first country to adopt bitcoin as legal tender. Officials in the Salvadoran congress voted in a “supermajority” of 62 out of 84 votes. This fulfills president Nayib Bukele’s promise to make bitcoin legal tender alongside the US dollar. 

 

“The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out,” the law reads. Furthermore, the law enables prices to be shown in bitcoin. Taxes can now be paid in bitcoin, and exchanges in bitcoin are exempt from capital gains tax. The government will also be partnering with digital wallet firm Strike to provide an easy and simple to use financial framework based around the cryptocurrency. Jack Mallers, founder of strike, claims that adopting bitcoin could help countries like El Salvador avoid some of the pitfalls of traditional fiat currency, such as excessive hyperinflation, that developing economies are sometimes prone to. 

 

This decision is unprecedented, as no country has yet …

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Crack Down on Money Laundering

Everyone has heard of the term “Money Laundering”, but most fail to understand what exactly it is and how it affects not only our daily lives but also a county’s economy. Money Laundering is an illegal process that individuals can take advantage of to hide the origins of where money was obtained illegally. This is most often done by passing the money through a complex number of bank transfers to eventually erase and hide where the money originated. In the end, the money launderer receives the “clean” money.

Ireland has had a history of struggling with cracking down on money laundering, and in light of having to pay nearly 2 million Euro to the European Commission in July 2020 for failing to implement regulations, a new law has been passed in an attempt to begin intensifying legislation around anti-money laundering. The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2020, was signed on May 5th, 2020.

This Bill aims to: 1: Prevent the creation of anonymous safe-deposit boxes by credit and financial institutions 2: Continuously improve on the customer …

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