With 62 votes, the legislative plenary session approves the Bitcoin Law with which El Salvador adopts Bitcoin as the legal currency of exchange. Despite the 19 votes against the Parliamentarians, the President Bukele noted on twitter: “The #LeyBitcoin is ambitious, but simple, it is also well structured so that it has zero risk for those who do not want to take risks.” Added that “The Government will guarantee convertibility at the exact value in dollars at the time of each transaction.”
The #LeyBitcoin It is ambitious, but simple, it is also well structured so that it has zero risk for those who do not want to take risks.
The Government will guarantee convertibility at the exact value in dollars at the time of each transaction.
– Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
What does the law say?
The standard only regulates Bitcoin, despite the existence of many cryptocurrencies on the market. The text consists of only 16 articles and once published in the official gazette, it will enter into force within 90 days. The Bitcoin in El Salvador it can be used to:
- Trade (All prices may be expressed in Bitcoin Art. 3)
- Pay Taxes (Art. 4)
- Exchanges in bitcoin will not be subject to capital gains tax (Art. 5)
- In goods and services, every economic agent must accept bitcoin as a form of payment (Art. 7)
Despite the fact that approximately 70% of the population has access to traditional financial services, the Salvadoran State will promote training and the necessary mechanisms so that the population can access Bitcoin transactions (Art. 8). It will also provide the necessary alternatives that allow users the automatic convertibility of bitcoin into dollars when the user so wishes, so a trust has been created in the Development Bank of Salvador -BANDESAL- (Art. 14).
Bitcoin It is now the largest cryptocurrency, with the total number of Bitcoins currently valued at roughly $ 70 billion. That is why countries such as Canada, Australia, the United Arab Emirates, Mexico and the United States are one step away from its regulation.
I have sent the preliminary draft of the #LeyBitcoin to @Assembly. pic.twitter.com/9vFztvvryG
– Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021