After El Salvador’s congress officially classified the world’s preeminent cryptocurrency as legal tender on June 9, bitcoin pioneer Max Keiser said that a “global bitcoin standard is now emerging” around the world. Referring to the adoption of bitcoin by El Salvador, he added that, “The country’s currency is now something scarcer and harder than gold”. Now Danny Scott, the CEO of crypto exchange Coin Corner, said that El Salvador’s bitcoin move could see the cryptocurrency classified as “foreign currency” and “no capital gains tax on bitcoin in other countries” could be a result.
On June 6 Mr Scott tweeted: “So in theory, if El Salvador makes bitcoin ‘legal tender’.
“This makes it a ‘foreign currency’ and will mean no capital gains tax on bitcoin in other countries.
“This is an additional great knock-on effect.”
A follower of Mr Scott said that making bitcoin legal tender “will open a Pandora’s Box if it is recognised as a foreign currency by the International Monetary Fund”.
Foreign currency is recognised by the International Monetary Fund (IMF) as the “official means of payment”…
