A bill to make bitcoin legal tender in El Salvador has been approved by a supreme majority in the Salvadoran Congress. “The purpose of this law is to regulate bitcoin as an unrestricted legal tender with the power to be free, unlimited in any transaction, and to any title that public or private natural or legal persons are required to fulfill. ,” describes the bill.
Bill to make bitcoin legal tender approved by Congress in El Salvador
A bill to make bitcoin legal tender has passed Congress in El Salvador. President Nayib Bukele announced Via Twitter on Wednesday morning: “Bitcoin law approved by majority vote in Salvador Congress. 62 votes out of 84. History.”
the bill was sent to Congress late Tuesday night; It has 16 articles. Article 1 states:
The purpose of this law is to regulate bitcoin as an unrestricted legal tender with liberating power, unlimited in any transaction, and for any title that is required to be carried out by natural or legal persons, public or private.
The bill details that the exchange rate between bitcoin and the US dollar “will be independently established by the market” and that “prices may be expressed in bitcoin.”
In addition, “tax contributions may be paid in bitcoin,” the bill states: “exchanges in bitcoin will not be subject to capital gains tax like any legal tender.” In addition, bitcoin must be accepted as payment by anyone offering goods and services.
Article 12 notes that those “who do not have access to technologies that permit transactions in bitcoin are excluded from the obligation” to accept bitcoin as a form of payment. “The state will promote the necessary training and mechanisms so that the population can access bitcoin transactions.”
Article 14 states:
Prior to the entry into force of this law, the State would guarantee the automatic and instantaneous convertibility of bitcoins into USD as required by the State-provided options, through the creation of a trust in Banco de Desarolo de Ei Salvador (Bandesal).
According to the bill: “This decree shall take effect ninety days after it is published in the Official Gazette.” can get full bill Here.
What do you think about El Salvador making bitcoin legal tender? Let us know in the comments section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.