Tue. May 21st, 2024

Bitcoin Becomes Legal Tender In El Salvador As Congress Approve Bill

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El Salvador’s president Nayib Bukele’s bill to make Bitcoin legal tender in El Salvador has been approved by a supermajority in the Salvadoran Congress today. 

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The bill introduced by the president of El Salvador to make Bitcoin (BTC) legal tender in the nation passed the Legislative Assembly with a supermajority. 

According to the bill, the state will provide the infrastructure that enables Bitcoin users to instantly convert their BTC to U.S. dollars if need be. Additionally, the state will provide “training and mechanisms” to aid citizens unfamiliar with Bitcoin because many will need to learn how to use the digital asset.

“It goes into effect immediately, In the case of El Salvador, Bitcoin is going to be legal tender just as the U.S. dollar,” he said, clarifying the government would allow 90 days for the infrastructure to be put into place.

“He revealed that he will be meeting with the International Monetary Fund on Thursday. The government will also be releasing an official Bitcoin wallet, although it will not be mandatory. The government intends to hold $150 million worth of Bitcoin in a trust fund in its development bank to assume merchant risks.

The permanent residency will be available for those who invest 3 BTC in El Salvador. Asked if the country would put Bitcoin in its reserve, he said there were no immediate plans.

Read Also:President Of El Salvador To Make Bitcoin A Legal Tender

The president said he hadn’t thought about Bitcoin mining but was favorably disposed toward the idea of renewable energy-based Bitcoin mining. Accepting Bitcoin would be compulsory for all businesses, and the Government plans to hold $150 million worth of Bitcoin in a trust fund according to the President.

The purpose of this law is to regulate Bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.

The bill includes a list of interesting proposals such as zero capital gains tax on BTC, allowing tax payments in BTC, and that economic agents “must” accept BTC as payment when offered by “whoever acquires a good or service.”


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By Queen Helen

Data Scientist, Tech Enthusiast and a Crypto Lover

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