The bill to introduce Bitcoin as legal tender in El Salvador was approved by a super majority in the Salvadoran Congress. “The purpose of this law is to regulate Bitcoin as unrestricted legal tender with liberating power, unlimited in every transaction and for all titles that public or private natural or legal persons must fulfill,” says the draft law.
Bill to approve legal tender for Bitcoin from Congress in El Salvador
The bill to introduce Bitcoin as legal tender has passed Congress in El Salvador. President Nayib Bukele announced via Twitter early Wednesday morning: “The Bitcoin law was approved by a super majority in the Salvadoran Congress. 62 votes out of 84. History.”
The bill was sent to Congress Tuesday night late; it contains 16 articles. Article 1 states:
The purpose of this law is to regulate Bitcoin as unrestricted legal tender with liberating power, unlimited in every transaction and for all titles that public or private natural or legal persons must execute.
The invoice states that the exchange rate between Bitcoin and US dollar “is freely determined by the market” and that “prices can be expressed in Bitcoin”.
In addition, “tax contributions can be paid in Bitcoin,” states the bill, stating: “Exchanges into Bitcoin are not subject to capital gains tax, just like any other legal tender.” In addition, Bitcoin must be used by anyone who offers goods and services can be accepted as a means of payment.
Article 12 states that those who “do not have access to the technologies that enable transactions in Bitcoin are excluded from the obligation” to accept Bitcoin as a means of payment. “The state will promote the necessary training and mechanisms so that the population can access Bitcoin transactions.”
Article 14 states:
Before this law comes into force, the state will ensure the automatic and immediate conversion of Bitcoin to USD, which is required for the alternatives offered by the state, by creating a trust at the Banco de Desarrollo de EI Salvador (BANDESAL).
According to the draft law: “This decree comes into force ninety days after its publication in the Official Gazette.” You can find the full invoice Here.
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