According to an announcement by President Nayib Bukele, the Congress of El Salvador has approved a law regulating bitcoins as legal tender. he is announce it 62 out of 84 votes in favor of the measure.
Invoice text The boss also shared it He noted that the purpose of the law is to “regulate bitcoins as legal tender unfettered by liberating power, unlimited in any transaction, and any property right required by public or private natural or legal persons.”
The text of the law also indicated that the exchange rate between BTC and the US dollar would be freely set by the market, tax contributions might be made in Bitcoin, Bitcoin exchanges would not be subject to capital gains taxes and that every economic agent must accept BTC when offered unless They have access to technology that would allow them to do so.
“The state should provide alternatives that allow the user to transact in bitcoin and have the possibility of automatic and instant conversion from bitcoin to US dollars if they so desire,” the text reads. Moreover, the country will enhance training and necessary mechanisms so that residents can access bitcoin transactions.
It’s not immediately clear what platforms or services El Salvador might use to help its citizens use Bitcoin, but Jack Mallers, founder of the Lightning Payments Strike platform, helped Bukele This highly anticipated law was announced at the Bitcoin 2021 event last week. During the announcement, Mallers said he was helping El Salvador create the infrastructure needed for its citizens to use bitcoin.
Before the law is enforced, Banco de Desarrollo de El Salvador will set up a trust fund that guarantees automatic and instant conversion of bitcoin into US dollars.
“All financial obligations expressed in US dollars, existing prior to the effective date of this law, can be paid in bitcoin,” according to the text of the law.
The law enters into force 90 days after its publication in the country’s Official Gazette.