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Crypto Prune > Regulation > El Salvador and US sign trade alliance paving the way for Bitcoin
Regulation

El Salvador and US sign trade alliance paving the way for Bitcoin

3 months ago 4 Min Read

El Salvador and the United States will accelerate their trade relationship with a new mutual agreement framework that will facilitate digital trade and benefit the Bitcoin (BTC) industry. The agreement, announced by the White House on November 13, 2025, removes barriers and sets an important precedent for future agreements on digital assets.

This agreement facilitates bilateral trade based on the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which took effect in 2006.

Importantly, El Salvador is committed to preventing barriers to trade and digital services. Also Ensure that digital services are not subject to discriminatory taxes. Both countries support a global moratorium on tariffs on electronic transmissions.

Although the language does not explicitly name Bitcoin or cryptocurrencies, it does create a permissive framework. This will facilitate the future of digital transactions and services that BTC can operate on. However, the agreement avoids any direct mention of currency or other digital assets created by Satoshi Nakamoto.

The United States will eliminate reciprocal tariffs on certain eligible Salvadoran exports. This also includes textiles and clothing. On the other hand, the positive impact of this agreement on national security has been acknowledged. US to consider agreement on future trade measures. It is expected that all aspects included in this document will be quickly finalized in the coming weeks.

How does this agreement pave the way for Bitcoin?

Although the agreement does not directly mention Bitcoin, it could have some important implications as it focuses on digital commerce and services.

A more favorable environment will be created, for example, if El Salvador commits to preventing barriers and not imposing discriminatory taxes on digital services, and if both countries support the suspension of tariffs on electronic transmissions. this For any business operating in the digital space. This naturally includes Bitcoin and cryptocurrency companies as they are considered digital services.

See also  What legislative measures are missing in the US to approve the Stablecoins Act?

If this digital trade framework is successful and lays the foundation for a freer flow of digital services, it could set a precedent. This will help ensure that future trade agreements, both with El Salvador and other countries, treat digital assets more clearly.

There are no special rules for Bitcoin, but there is cooperation regarding “good regulatory practices” in the digital field. Could lead to greater harmony between the U.S. and El Salvador Reducing the complexity of international operations in terms of how digital services are handled will ultimately benefit the digital asset industry.

Moreover, the fact that the US signed such a wide-ranging agreement with El Salvador without imposing restrictions on Bitcoin policy can be interpreted as a further sign of confidence on the part of the US towards the Central American country. This is despite previous criticism from organizations such as the International Monetary Fund.

The signing of this agreement coincided with the celebration of a “historic Bitcoin” event in El Salvador. As reported by CriptoNoticias, the summit, hosted by the National Bitcoin Authority, will bring together ecosystem leaders on El Salvador’s soil.

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