Key facts:
Payment with bitcoin will not generate any extra charge, said Mayor José Chicas.
Bitcoin continues to gain ground in El Salvador, despite criticism.
The adoption of bitcoin (BTC) in El Salvador continues its course gradually. Now, the town of Ilopango will enable tax payments with this cryptocurrency through Chivo Wallet, reported Mayor José Chicas.
The citizens of Ilopango will have the possibility to comply with their tax obligations using the wallet developed by the Nayib Bukele government without paying with bitcoin entailing any type of fine or commission, added Chicas through your publication On twitter.
“Ilopango, welcome to the future,” wrote the local government representative, who did not give further details about the implementation of this new payment mechanism for taxes in the city.
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The speech of the mayor of Ilopango coincides with the government’s position regarding the use of bitcoin as a bridge to that El Salvador enters a world of greater technological development. On the horizon would be “the Singapore” of the Latin American region.
Collecting taxes through the Chivo Wallet could be, in addition to this step into the “future” referred to by the local authority, a way to seek to collect BTC. Let us remember that this news occurs with the cryptocurrency more than 40% below its maximum market price and in the process of accumulation by the central government, with the president constantly announcing purchases.
Bitcoin continues, despite the IMF
The truth is that BTC continues to gain space in the Central American country, despite the fact that not everything is rosy outside of the government. A recent consultation determined that barely 30% of the population trusts the use of cryptocurrency, while criticism from abroad continues to accumulate.
For example, the International Monetary Fund (IMF) called on the central government to desist from using bitcoin as legal tender. According to the international organization, the use of cryptocurrency is very risky for Salvadoran financial stability.
However, Bukele’s bet becomes firmer despite the criticism. In response to the IMF, the Minister of Finance, Alejandro Zelaya, said on Monday: “no international organization is going to force us to do anything, nothing at all.”
Previously, Bukele had announced the purchase of another 410 bitcoins for the Salvadoran reserve. And despite the fact that the country’s BTC balance remains in the red today, the plan seems to continue to be to accumulate coins.