The Act on the recognition of Bitcoin as a legal tender by President Nayib Bukele was passed by the Salvadoran parliament.
El Salvador and BTC
A few days ago, the President of El Salvador revealed at the Bitcoin 2021 conference in Miami that he plans to make BTC legal tender in his country. We wrote about it here.
Now the President’s Act is in place voted in Congress country.
President Nayib Bukele has already announced that he will sign the relevant law by today at the latest. He added that accepting Bitcoin as a means of payment will be mandatory for all businesses in his country.
– [Firmy] They must accept it by law – He said. – If you go to Mexico they must recognize your pesos. (…) In El Salvador, Bitcoin will be legal tender, just like the US dollar – added.
He announced that he would meet with the International Monetary Fund on Thursday. The government will also release an official Bitcoin wallet and intends to hold $ 150 million Bitcoin equivalent in a trust fund in its “Development bank”.
When asked if the country would put Bitcoin in its currency reserve, the politician replied that today there are no such plans, but he does not rule out that they will arise.
– I don’t know, it is developing very fast. We do not rule out having Bitcoin in our reserves in the near future – he explained.
The president also said he is not thinking about the state mining Bitcoin, but is sympathetic to the idea of cryptocurrency mining using renewable energy.
The BTC Act
“The purpose of this law is to regulate Bitcoin as unlimited legal tender.” – we read in the act.
The bill also contains a list of interesting proposals, such as zero capital gains tax on BTC trading or paying taxes with Bitcoin.
Under the law, the state will provide the infrastructure that will allow Bitcoin users to convert instantly from BTC to USD if the need arises. In addition, the government will provide “training and mechanisms “to help citizens unfamiliar with Bitcoin use cryptocurrency.
Interestingly, after the latest announcement, Bukele changed his Twitter profile picture to one with laser eyes. It is a symbol of opening up to digital currencies.
The Bukele idea sparked the enthusiasm of many politicians across Latin America who are supporters of BTC. On June 7, Paraguayan Congressman Carlitos Rejala published a photo with laser eyes. In turn, Mexican Senator Eduardo Murat Hinojosa revealed that he was planning “Promote and propose a legal framework for cryptocurrency coins in the lower house of the parliament of Mexico.”
Added to this is Gabriel Silva, a Congressman from Panama, who also announced that he intends to present a bill that regulates the cryptocurrency market in his country.