Reading the paper intended this. El Salvador is growing bitcoin-related spending despite the gloomy trend. They are the first to pass a “Digital Asset Issuance Law” to regulate all digital currencies. This law will take effect soon.
The rule would “support the efficient development of the digital asset market and respect the rights of acquirers,” according to a report on El Salvador’s National Assembly website.
Cryptocurrencies have their own laws under this law. This distinction is crucial. Digital assets can only be legally secured in a distributed ledger or legal equivalent. Despite many distributed ledger technologies, blockchain is becoming the most popular.
CBDCs cannot be traded or exchanged like unsuitable assets, securities, or sovereign assets governed by foreign law. Ana Ojeda Caracas, a bitcoin law expert, clarified some bill clauses on Twitter.
If cryptocurrency acceptance is desired, an ISP registry should be prioritised. Recent legislation define stablecoins and tokens. Stopping Tax-Deductible Token Sales
It was expected that opponents of the new law would speak out immediately. El Salvadorian hacktivist Mario Gomez has spoken out against President Nayib Bukele’s Bitcoin Law. He argues the regulation was created to aid failing multinational firms and promote El Salvador as a bitcoin refuge. Multinational firms engage in developing countries because they can easily meet with the president of a tiny country and propose policies that benefit them. Bukele’s Bitcoin Law was criticised for helping financially distressed international corporations. Both goals were met. In a Twitter conversation about the matter, he said, “The reason these firms focus on little countries is that it is easy to meet directly with a president as a major company and craft laws that favours them.”
President Bukele of Bukele presented Congress with the Bitcoin Law in June 2021. The National Assembly’s pro-government majority approved it hours later. The new law should be implemented quickly.