A few days after President Najib Bukele announced that he had submitted a proposal to adopt Bitcoin in El Salvador as a legal currency, and announced yesterday that the proposal had been submitted to the country’s legislature for study and vote.
To be already discussed and approved hours ago.
With 62 votes in favour, the Legislative Assembly of El Salvador hours ago approved the Bitcoin law that the country’s president had introduced earlier.
President Najib Bukele announced via his Twitter account that he has submitted the Bitcoin Act to the El Salvador Congress.
The legislative instrument grants bitcoin the status of legal tender for mandatory acceptance throughout the national territory.
Just two hours after the president announced his proposal, the country’s Legislative Assembly revealed that it was discussing its agreement with Deputy Caleb Navarro, revealing the positive opinion of the Finance Committee.
Congressman Chris Guevara said during the plenary session, which included other economic issues, that the State General Budget Law for the 2021 fiscal year has been amended and discussed.
With this, El Salvador becomes the first country in the world to recognize Bitcoin as a legal currency and the period of adaptation of all institutions in the country to the new era in which Bitcoin is traded among El Salvadorans.
Key aspects of the new Bitcoin law adopted in El Salvador:
The new law recognizes bitcoin as legal tender, unfettered by libertarian power, and unlimited in any transaction and in any deed that natural or legal persons wish to make.
This puts Bitcoin on par with the US dollar as a currency for free use and mandatory acceptance throughout the territory.
Similarly, the same law states that the exchange rate will fluctuate according to the free market.
It also orders the creation of a special credit in the Development Bank of El Salvador to ensure instant exchange between both currencies.
The new law also stipulates that prices must be expressed in bitcoin, and this cryptocurrency must be accepted compulsorily throughout the national territory except for those remote areas or people who do not have access to the means necessary to conduct electronic transactions.
Likewise, bitcoin financial operations – such as trading – will be exempt from capital gains taxes because bitcoins are legal tender.