El Salvador has passed a bill that will make bitcoin legal tender in the country


UPDATE (June 8, 2:15 am ET): El Salvador has passed a bill that will make bitcoin legal tender in the country.

El Salvador's legislature members cleared the bill with a "supermajority" vote, receiving 62 votes for the bill out of a possible 84. Nineteen members opposed the bill and three abstained.

The bill now awaits president Nayib Bukele's signature, which will likely happen by Wednesday.

El Salvador's president, Nayib Bukele, submitted a proposed law to the country's national legislature that, if and when approved, will "regulate bitcoin as unrestricted legal tender."

Specifically, the proposed law covers a number of areas, according to an English translation of the bill posted on Twitter by Bukele on Tuesday evening.

Articles of the so-called Bitcoin law include the ability for bitcoin to be used to pay taxes, the exclusion of bitcoin from capital gains taxes and the use of the U.S. dollar as a "reference currency" when denominating prices.

What's more, the bill mandates that "every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service."

According to the text, El Salvador's government will play a role in facilitating the use of bitcoin in the country alongside private-sector services.

As the bill notes:

"Without prejudice to the actions of the private sector, the State shall provide alternatives that allow the user to carry out transactions in bitcoin and have automatic and instant convertibility from bitcoin to USD if they wish. Furthermore, the State will promote the necessary training and mechanisms so that the population can access transactions." 

Per the text, it appears that the Development Bank of El Salvador will play a role in this process via a trust.

Bukele's plan to have bitcoin declared as legal tender in El Salvador was announced over the weekend during the Bitcoin 2021 conference in Miami, Florida.

The El Salvadorean president's office previously outlined plans to provide tax incentives to bitcoin-focused businesses following tweets from Bukele. Justin Sun said Monday that Tron would establish an office in the country. 

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC