The El Salvador parliament on Wednesday approved the Bitcoin Law making the Central American nation the first to formally adopt bitcoin as legal tender. Bitcoin now joins the US dollar (USD), which has been the legal currency of the country since 2001. The new law will go into effect within 90 days. "Despite El Salvador’s small size, Bukele’s effort is a major milestone in monetary policy history, one with significant ramifications for the global financial system." — Avik Roy, Forbes https://twitter.com/nayibbukele/status/1402507224916836352?s=20 Meanwhile, India's proposed regulations around cryptocurrency still remain unclear. Initially, the government said that it would ban cryptocurrency activity in India and then it clarified that it would adopt a "calibrated approach." Thereafter, the government amended the regulations on company financial disclosures recognising virtual currencies as digital asset. It also indirectly recognised the role of crypto exchanges as businesses that perform a fiduciary role. The government also told Parliament that crypto-exchange transactions and investments are taxable. Now, it is reportedly forming a new committee to examine the prospect of regulating the crypto-verse. Why has El Salvador made bitcoin a legal tender? Earlier in the day, President Nayib Bukele sent the bitcoin bill to the country’s Congress for a vote. The succinct 3-page bill states the following reasons why El Salvador is adopting the cryptocurrency: For the benefit of inhabitants: The bill states that it is the government's "obligation to promote and protect private enterprise, generating the necessary conditions to increase national wealth for the benefit of the greatest number of inhabitants."…
