Honduras, El Salvador’s closest neighbor, is now also accepting bitcoin as a means of payment.
Xiomara Castro, President of Honduras, said, “El Salvador should not be the only country that escapes dollar hegemony. Honduras has the right to move toward the First World.” Following the resignation of her husband Manuel Zelaya, Castro took over as head of state in January 2022.
As of last fall, the law on the adoption of the first cryptocurrency in El Salvador has come into force. Prices can now be set in bitcoin, and taxes can also be paid for the first cryptocurrency. The exchange of bitcoins for fiat currency does not trigger capital gains tax, while bitcoins can also be traded for dollars at market value. All businesses are required to accept the first cryptocurrency.
According to El Salvador’s Minister of Tourism Morena Valdez, the tourism industry in El Salvador has grown by more than 30% since the adoption of bitcoin as a means of payment in September 2021. Bukele boasted in February that the country showed a double-digit GDP growth in January 2022. He added that he expects two more countries in 2022 to adopt bitcoin as a means of payment.