The dDeputies of the finance commission of the Legislative Assembly of El Salvador agreed to create a Bitcoin trust of about 150 million dollars, with the possibility of expanding, which will allow the exchange and convertibility between crypto and the dollar.

The legislators modified the General State Budget this year to approve the request made by the Minister of Finance, Alejandro Zalaya, who asked to redirect 500 million dollars granted as loans by the Central American Bank for Economic Integration (CABEI), which would be reserved originally for the reactivation of the country’s small and medium-sized enterprises.

According to the modifications, the funds will be reallocated as follows: 150 million dollars were granted to the Development Bank of El Salvador, Bandesal, for the Bitcoin Trust; 53.3 million dollars for the execution of the plan, of which “USD 23.3 million are for the“ Cryptofriendly”. They refer to the spaces where the national executive is installing the cryptocurrency ATMs.

They are also granting 30 million dollars “for the digital wallet promised by President Nayib Bukele as an incentive for Salvadorans to make use of Bitcoin for their commercial transactions through the state’s digital platform called Chivo.”

The rest of the funds will be granted to different government entities, including 20 million for Bandesal, with the purpose of cancelling the temporary subsidy for the increase in wages to micro, small and medium enterprises.

Despite the criticism generated by the legal adoption of Bitcoin in El Salvador by the World Bank, the International Monetary Fund, politicians and citizens of the country, the measure will become effective with the entry into force of the Bitcoin Law this month and the government made a video to promote the benefits for the different sectors of the country.

M. Rodríguez

Source: diariobitcoin

La entrada El Salvador will create a trust to convert Bitcoin into dollar apareció primero en Bitfinance.

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.

Con 62 votos, el pleno legislativo aprueba la #LeyBitcoin con la que El Salvador adopta el #Bitcoin como moneda de circulación legal.

¡#LaNuevaAsamblea sigue haciendo historia! pic.twitter.com/Ur9OQzPvYI

— Asamblea Legislativa (@AsambleaSV) June 9, 2021

M.Pino

Source: doblellave

La entrada El Salvador Congress approves bitcoin as legal tender apareció primero en Bitfinance.

The Parliament of El Salvador has approved this Wednesday the legalization of the use of bitcoin, which will be legal tender in the Central American country together with the dollar, as confirmed by the Legislative Assembly through its account on the social network Twitter.

“In plenary session 7, with 62 votes, the new Assembly approved the ‘Bitcoin Law’, with which El Salvador adopts bitcoin as a legal currency,” said the body, highlighting that the plenary session has supported each one of the 16 articles of the project.

The vote has been applauded by the country’s president, Nayib Bukele, who has said that the country makes “history.” “The ‘Bitcoin Law’ has just been approved by a qualified majority in the Legislative Assembly: 62 out of 84 votes!”, he highlighted.

The law approved by the body states that the use of this cryptocurrency will be “unrestricted with liberating and unlimited power in any transaction and to any title that public or private natural or legal persons want to carry out.”

It also establishes that the exchange rate between the dollar and the bitcoin will be established by the market itself, although for accounting purposes the dollar will continue to be used as a reference, as has been collected by the Salvadoran newspaper ‘La Prensa Gráfica’.

The proposal was unveiled over the weekend by the Minister of the Economy, María Luisa Hayem, within the framework of a world conference on this cryptocurrency held in the US city of Miami.

Source: dpa

La entrada Parliament of El Salvador approves legal tender for bitcoin apareció primero en Bitfinance.