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Local currency is only a collectible item. USD has been used since 2001.

• yumraj 5y ago
  Oh, that makes it even more interesting.. Basically El Salvador becomes the new Switzerland due to laundered and hidden money? I'm unable to wrap my head around due to the USD angle.
  • el-salvador 5y ago
    From what I understand the government wants to promote the country to bitcoin investors and companies by offering no capital gains taxes on Bitcoin. They also promoted that El Salvador doesn't have property taxes. I wouldn't call El Salvador a laundering capital though. Our local regulations are super strict. Most payments above USD 100 require and ID. It is impossible to pay or deposit, even one cent, in a bank without and ID or passport. Other countries are much more lax.
    • yumraj 5y ago
      > I wouldn't call El Salvador a laundering capital though.. My apologies, I meant no disrespect to El Salvador. Also, I did not mean that it is currently the laundering capital. I was merely asking the question that would it become possible for someone to just enter the country with BTC and exchange into USD, and if so that would lead to laundering. But I’m no expert in this topic so I’m pretty sure there will be safeguards..
      • el-salvador 5y ago
        That's an interesting question... I dont think there is an answer for those specific cases yet. The new regulations for bitcoin are yet to be written by the local regulator.
  • tinus_hn 5y ago
    Could be they want to (appear to) be less US dependent