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The El Salvadoran Congress has just approved a bill to make Bitcoin a legal tender in the country. Reports show that the Bill got a “supermajority” vote, indicating how excited most of the country is regarding the new development.
The Bill noted that:
“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 Bitcoin Bill Received Supermajority Vote in the El Salvadoran Congress
President of El Salvador Nayib Bukele broke the news via his official Twitter handle early on Wednesday, noting that:
“The Bitcoin Law has been approved by a supermajority in the Salvadoran Congress. 62 out of 84 votes. History.”
The Bill, which got forwarded to Congress late Tuesday, contained 16 articles. Notably, Article 1 states:
“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 noted that the exchange rate between BTC and the dollar “will be freely established by the market,” û ji “prices may [get] expressed in bitcoin.”
Additionally, the Bill detailed that tax contributions could be paid in BTC, noting that:
“Exchanges in bitcoin will not be subject to capital gains tax, just like any legal tender.”
Also, the Bill mandated that Bitcoin should get accepted by all businesses offering goods and services.
Meanwhile, Article 12 highlighted that those who “do not have access to the technologies that allow to carry out transactions in bitcoin are excluded from the obligation” to accept Bitcoin payments. Article 12 also noted that “the State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.”
Furthermore, Article 14 states:
“Before the entry into force of this law, the State will guarantee, through the creation of a trust at the Banco de Desarrollo de EI Salvador (BANDESAL), the automatic and instantaneous convertibility of bitcoin to USD necessary for the alternatives provided by the State.”
According to the ill, the new Act will take effect ninety days from its publication in the Official Gazette.
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