Bill to make Bitcoin legal tender passes in El Salvador

Bill to make Bitcoin legal tender passes in El Salvador

The President of El Salvador's bill to make Bitcoin legal tender in El Salvador passed Congress with a supermajority just before 6AM UTC.

In a Twitter Spaces conversation that began just after 5AM UTC with 22,000 listeners President Nayib Bukele said he would sign off on the historic law later tonight or first thing tomorrow.

Our top trading bots

“It goes into effect immediately,” he said, clarifying the government would allow 90 days for the infrastructure to be put into place.

He said that accepting Bitcoin would be mandatory for all businesses. “They have to take it by law,” he said of merchants in the country. “If you go to Mexico they have to take your pesos.

“In the case of El Salvador Bitcoin is going to be legal tender just as the US Dollar.”

He revealed that he will be meeting with the International Monetary Fund on Thursday. The government will also be releasing an official Bitcoin wallet (however this will not be mandatory). The government intends to hold $150 million equivalent of Bitcoin in a trust fund in its development bank to assume the risks of merchants.

Permanent residency will be available for those who invest 3 BTC in El Salvador. Asked if the country would put Bitcoin in its reserve he said there were no immediate plans:

"I don't know this is evolving very fast. We're not ruling out having Bitcoin in our reserves in the near future."

The President said he hasn't thought of Bitcoin mining but was favorably disposed towards the idea of renewable energy Bitcoin mining.

The Bitcoin law was a bill submitted earlier today after Bukele tweeted that “I’ve just sent the Bitcoin Law to congress,” and uploaded copies of the bill in Spanish and English.

“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,” the bill reads.

The bill includes a list of interesting proposals such as zero capital gains tax on BTC, tax payments allowed in BTC, and economic agents “must” accept BTC as payment when offered by “whoever acquires a good or service.”

According to the bill, the state will provide the infrastructure that enables Bitcoin users to instantly convert from BTC to USD if need be. Additionally, the state will provide “training and mechanisms” to aid citizens unfamiliar with Bitcoin — as many will need to learn how to use the digital asset.

Interestingly, following Bukele’s latest announcement, he changed his Twitter profile picture to one that features blue laser eyes, as opposed to the red onesusually found in the iconic crypto meme.

Bukele’s progressive crypto move has sparked enthusiasm from a number of politicians throughout Latin America, who have either touted crypto proposals of their own or donned red laser eyes in support of crypto.

On June 7, Paraguayan congressman, Carlitos Rejala posted laser eyes and promised a Bitcoin announcement later this week.

The following day Mexican senator Eduardo Murat Hinojosa revealed he plans on ““promoting and proposing a legal framework for crypto coins in Mexico's lower house.”

While Gabriel Silva, a Panamanian congressman also stated plans to submit a pro-crypto bill that same day.

Keep reading relating to Cointelegraph
MicroStrategy CEO won’t sell $5B BTC stash despite crypto winter
Despite a 40% drop in the value of Bitcoin (BTC), MicroStrategy’s Michael Saylor has no intention of selling his firm’s $5-billion stash.Even if BTC suffers...
IMF: Bitcoin matured to ‘an integral part of digital asset revolution’
Crypto is no longer an obscure asset class within the financial ecosystem, but a growing correlation with the stock market undercuts the “investment hedge”...
ZEC price jumps 20% in one day as Zcash devs unveil transition to Proof-of-Stake
Zcash (ZEC) surged by nearly 20% in the past 24 hours, helped by the euphoria surrounding its core protocol's decisive transition from Proof-of-Work (PoW)...
Huobi trials NFT marketplace to further GameFi and metaverse strategy
Huobi Group, the company operating one of the world’s largest cryptocurrency exchanges, is launching its own nonfungible token (NFT) marketplace, following...
Polkadot eyes breakout to $75 after DOT price rally sets up classic bullish reversal
Polkadot (DOT) chart technicals suggest it may rally to a new record high near $75 if DOT can manage to close above its $41–$43 range decisively.That’s...
Joining the ranks: Bitcoin’s correlation with gold and stocks is growing
Bitcoin (BTC) is an uncorrelated asset, or so the narrative used to go. For much of Bitcoin’s lifetime, it existed as something of value to a very small...
US crypto exchange Kraken eyeing public listing in 2022
Kraken CEO Jesse Powell has revealed that the crypto exchange could go public before the end of 2022.Powell said this during an interview with Bloomberg...
XRP Climbs 12% In a Green Day
Investing.com - XRP was trading at $0.99418 by 13:54 (17:54 GMT) on the Investing.com Index on Monday, up 11.64% on the day. It was the largest one-day...
DOGE surges as Elon Musk says he’s working with devs to ‘improve efficiency’
Elon Musk’s latest foray into crypto markets came a few hours ago when he tweeted he is working with the DOGE developers to improve the cryptocurrency’s...
Financial advisers lead the institutional push toward crypto adoption
In the past, there were plenty of reasons for financial advisers to dismiss Bitcoin (BTC) and other cryptocurrencies as a worthy investment, but all of...
Peak fear? Bitcoin funding rates crash to lowest levels in 7 months
The funding rate of Bitcoin (BTC) has dropped to levels not seen since September 2020 as the price of Bitcoin plummeted below $52,000 on April 18. Quant...
Cardano Climbs 11% In Bullish Trade
Investing.com - Cardano was trading at $1.316322 by 09:04 (13:04 GMT) on the Investing.com Index on Tuesday, up 10.95% on the day. It was the largest one-day...
Thai SEC says investors should have crypto trading experience
Thailand’s Securities and Exchange Commission has clarified its guidelines to stipulate that those trading cryptocurrencies in the country should have some...
Milking the cash cow: NFTs seen as investment opportunity by VCs
According to data from Messari, the NFT marketplace sales volume grew by 2,882% in February. It dwarfed the increase in monthly sales volume in any given...
Bitcoin On the Edge of 2017: Huge Milestones and Expected Changes
The holiday season is in high gear, and bitcoin has started recovering from a devastating plunge by 30% which took place just three days before Christmas....