This Wednesday, June 9, the Congress of El Salvador approved a law that will convert bitcoin into legal tender in this nation. The initiative was approved with the votes of 62 deputies of the 84 in Parliament and will enter into force 90 days after its publication in the Diario Oficial.
In this way, the Central American country aims to boost its economy, thus becoming the first to adopt a cryptocurrency (although Venezuela has the particular Petro, the world’s first state virtual currency), which users use mainly as a refuge for long-term value, waiting for it to increase over time.
Bitcoin legislation, a pioneering initiative
Part of article 1 of the new regulations approved and called the Bitcoin Law states: “This law is intended to regulate bitcoin as legal tender, unrestricted with liberating power, unlimited in any transaction” and to any title that natural persons, public or private legal requirements to be carried out.
The ordinance establishes that the exchange between virtual currency and the dollar will be established “freely by the market” and will not be subject to capital gains taxes like any legal tender.
In addition, the law indicates that every economic agent must accept digital currency as a form of payment when it is offered by whoever acquires a good or service and that the government will implement the necessary institutional structure for the circulation of cryptocurrency.
— Asamblea Legislativa (@AsambleaSV) June 9, 2021