Bitcoin Becomes Legal Tender
Wednesday, June 9, 2021
Following the approval of the Bitcoin Law in El Salvador by the deputies of the Legislative Assembly, there is now a new legal framework that recognizes this digital currency as legal tender in the country.
The President of the Republic, Nayib Bukele, sent to the Legislative Assembly, through the Minister of Economy, Maria Luisa Hayem, the bill to allow the use of Bitcoin in the country. The president indicated that El Salvador will partner with Strike, a digital payments company, highlights an official statement released on June 9, 2021.

Bitcoin is a digital currency, which was created in 2009 and is used in transactions without intermediaries, i.e. it works in a decentralized manner.

You may be interested in "Financial Services: Business Potential in Central America"

The Assembly informed that prior to passing to the plenary, the legislators of the Financial Commission discussed the law initiative and ruled it in favor. The Bitcoin Law was approved by general terms with a total of 62 votes by show of hands.

By approving the Law, the State will guarantee, through the creation of a trust in the Development Bank of El Salvador (BANDESAL), the automatic convertibility of bitcoin to dollars. The exchange value of this cryptocurrency to dollar will be established by the market, in accordance with the Law. This does not mean that bitcoin comes to replace the currency currently in use (US dollars).

The Bitcoin Law

The Legislative Assembly decreed on June 8, 2021 a total of 10 articles as general provisions:

Art.1. The purpose of the law is to regulate bitcoin as legal tender, unrestricted with laboratory power, unlimited in any transaction and in any title that people require to perform.

Art.2. The exchange rate between the Bitcoin and the United States dollar shall be freely established by the market.

Art.3. All prices may be expressed in bitcoin.

Art.4. Tax contributions may be paid in bitcoin.

Art.5. Exchanges in bitcoin shall not be subject to capital gains taxes in the same manner as any legal tender.

Art.6. For accounting purposes, the Dollar shall be used as the reference currency.

Art.7. Every economic agent shall accept bitcoin as a form of payment when it is offered by the person acquiring a good or service.

Art.8. Without prejudice to the actions of the private sector, the State shall promote alternatives that allow the user to carry out bitcoin transactions, as well as to have automatic and instantaneous convertibility of bitcoin to dollars in case he/she wishes to do so.

Art.9 The limitations and operation of the alternatives of automatic and instantaneous conversion of bitcoin to dollars provided by the State shall be specified in the Regulation to be issued for such purpose.

Art.10. The Executive Branch shall create the necessary institutional structure for the application of this law.

Do you know that we are now part of something bigger?
Learn about PREDIK Data-Driven, our new global brand.
 
More on this topic
Coincaex to Launch Operations in El Salvador
June 2021
After El Salvador approved a legal framework that recognizes Bitcoin as a legal tender, the cryptocurrency exchange Coincaex announced that at the end of June it will open an office in the country.
On June 8, the Legislative Assembly of El Salvador approved the Bitcoin Law
, a legal framework that recognizes this digital currency as legal tender in the country.
Cryptocurrency Use: CABEI to Advise El Salvador
June 2021
In order to assess risks, verify regulation and other issues, the Central American Bank for Economic Integration will provide the Salvadoran government with advice on the implementation of the new cryptocurrency scheme, called Bitcoin.
On June 8, the Legislative Assembly of El Salvador approved the Bitcoin Law
, a legal framework that recognizes this digital currency as legal tender in the country.
Bitcoin Legalization Risks
June 2021
Following the approval of the Bitcoin Law in El Salvador by the members of the Legislative Assembly, which creates a legal framework that recognizes this digital currency as legal tender in the country, the IMF warns that financial and legal risks have arisen.
With the approval of the Law,
the State will guarantee, through the creation of a trust in the Development Bank of El Salvador (BANDESAL), the automatic exchangeability of bitcoin to dollars
. The exchange value of this cryptocurrency to dollar will be established by the market, according to the Law.
Cryptocurrencies are Illegal in Guatemala
February 2021
After multiple consultations, the Superintendency of Banks announced that virtual currencies or assets such as Bitcoin, Ethereum, Ripple and other similar ones, are not legal tender in the country.
The Superintendency of Banks, derived from the different consultations made by economic and financial agents regarding the use of virtual currencies or assets, known as cryptocurrencies, informs the population that in accordance with the Monetary Law, the monetary unit of Guatemala is the Quetzal and only the Bank of Guatemala can issue banknotes and coins within the territory of the Republic, therefore virtual currencies are not legal tender in the country, explains an official statement.
Goods
Financial Instruments Financial Services
Countries
El Salvador
Insight
Coin Unified currency law Law computingfinancial information Financial Institutionsfinancial transactions financial supervisionFinance Banking
RELACIONADO
Banking
Financial Services
Finance
financial supervision
financial transactions
Daily Update Government PurchasesDownload brochure (only in spanish)Trade Inteligence Subscriber Access NewsletterContact Us MarketDataMexico Español
2008-2021 © CentralAmericaData.com
Trade InteligenceWho we areContact Us