El Salvador’s Legislative Assembly today passed a positive opinion in a vote on a law that will make bitcoin legal tender in the country on a par with the US dollar. 62 parliamentarians voted in his support, 17 – against, and one abstained. The law still needs to be approved by a separate vote and will enter into force 90 days after publication in the official government gazette.
Approved the #LeyBitcoin in El Salvador.
– Daniel Alejandro Cruz (@dacruzniel) June 9, 2021
The President of Salvador Nayib Bukele announced plans to legalize bitcoin last week. Before today’s vote was published full version of the document. It stipulates that Bitcoin can be used to set prices and pay taxes. For accounting purposes, the base currency will continue to be the dollar. Bitcoin transactions are not subject to capital gains tax, like any other transactions with means of payment.
“Any economic agent must accept bitcoin as a means of payment when it is offered as payment for goods and services,” the document says. Those who “do not have access to technologies that would allow transactions in bitcoin” are exempted from this requirement.
In addition, the state guarantees the possibility of automatic and instant exchange of bitcoin for the dollar. For this, a special trust will be launched based on the Development Bank of El Salvador.
Motivating the decision to recognize Bitcoin as legal tender, the El Salvadorian authorities reported last week:
“Central banks are taking more and more actions that could damage the economic stability of El Salvador. In order to reduce the negative influence of central banks, it becomes more and more important to approve the circulation of digital currency, the supply of which cannot be controlled by any central bank and only changes according to objective and measurable criteria. ”