In El Salvador, which accepts Bitcoin as legal money, it was determined that the largest crypto money transfer transactions increased 4 times in May compared to last year. However, fiat money is still the most widely used remittance method in the country.
It turned out that the people of El Salvador were seriously using the largest cryptocurrency even before the country government made the Bitcoin move. After the Bitcoin law, which became legal in the country on June 9 and will officially take effect 90 days later, payments can be made in BTC, and there will be no capital gains tax on Bitcoin.
From 400 thousand dollars to 1.7 million dollars…
According to the news of Reutres, the rate of transfers made with Bitcoin in the country in May increased 4 times compared to last year. The value of remittances made with BTC and less than a thousand dollars was $ 1.7 million. Last year, this figure was equal to 424,000 dollars. In other words, El Salvadorans actually started using Bitcoin seriously before the law in June. It is stated that the transfers made in this amount generally come from El Salvadorans working abroad.
El Salvador’s president, Nayip Bukele, said in a statement after the adoption of the law, that transactions with Bitcoin would reduce the payment costs of the 6.5 million population and ensure the participation of a significant part of the country without a bank account in financial life.
Mining has also been ordered
The report also stated that Bukele also instructed the executives of LaGeo, El Salvador’s energy company, to make the company’s facilities suitable for cryptocurrency mining.