El Salvador passes law to make Bitcoin legal tender

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It’s official, folks. The bill to make Bitcoin legal tender in El Salvador has been approved by a supermajority in the country’s Congress early Wednesday morning.

The bill was sent to the Congress late Tuesday night.

President Nayib Bukele announced it via Twitter, revealing that the Salvadoran legislature has approved the bill with it garnering 62 votes in favor, with 19 opposed and three abstentions. The president intends to sign the bill into law later tonight or early in the morning.

Historic.

The bill contains 16 articles, with Article 1 stating:

“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.”

It also details that the exchange rate between Bitcoin and the US dollar will be freely established by the market, and the prices may be expressed in the cryptocurrency. Furthermore, it mandates that Bitcoin must be accepted as payment by anyone offering goods and services.

The bill also notes that those who do not have access to the technologies that allow to carry out transaction in Bitcoin are excluded from the obligation to accept the cryptocurrency as payment. The state will promote the necessary training and mechanism to the population can access Bitcoin.

In addition to all this, tax contributions can be paid in Bitcoin, and exchanges in the digital currency will not be subject to capital gains tax, just like any legal tender.

According to the bill, the decree will take effect 90 days after its publication in the Official Gazette.

The full bill can be found here.


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