El Salvador Bill Will Require ‘Every Economic Agent’ to Accept Bitcoin Payments

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Posting on his personal Twitter, El Salvador President Nayib Bukele said that he had sent the Bitcoin bill to the National Assembly. The bill states that it wants economic actors to accept payments in bitcoin, and that the government will also create a trust that will allow for the “instant convertibility of bitcoin to dollars.”

El Salvador Bill Will Require ‘Every Economic Agent’ to Accept Bitcoin Payments

El Salvador’s bitcoin bill would require businesses to accept payments in cryptocurrency, a draft version published Tuesday night said.

The bill, proposed by El Salvador President Nayib Bukele, would treat bitcoin as legal tender, along with the US dollar, if passed by Congress and passed into law. Bukele announced his intention to launch the bill Saturday at the Bitcoin Miami conference with Strike founder Jack Mallers.

“In order to promote the economic growth of the country, it is necessary to allow circulation of a valuable digital currency that follows the criteria of an exclusive free market, to increase the national wealth for the benefit of the people. largest number of residents,” the bill said.

According to the provisions of the bill:

Commodities can be priced in bitcoin

Taxes can be paid in bitcoin

Bitcoin trading will not be subject to capital gains tax

US Dollar will remain the reference currency for bitcoin price

Bitcoin must be accepted as a form of payment by “every economic agent”

The government will “provide alternatives” to allow cryptocurrency transactions

The bill notes that 70% of El Salvador’s population lacks access to financial services and says the federal government will “promote the necessary training and mechanisms” to allow citizens to access electricity. death.

How Can You Use Bitcoin in El Salvador?

Bitcoin will not replace the dollar- Government officials in El Salvador said. However, the buyer can completely use Bitcoin for payment if the chargeer wants to accept it.

“A tomato that costs 20 cents will still cost 20 cents, even among merchants that accept bitcoin,” said Miguel Kattán, El Salvador’s Minister of Trade and Investment.

That said, bitcoin will certainly be legal tender, however it is no substitute for the dollar. The US dollar is still the standard measure of the value of goods in all payment methods.

Although the US dollar is the official currency ever in El Salvador, people have been using Bitcoin.

Surfers’ paradise El Zonte — a village of 3,000 people in El Salvador — has a Bitcoin economy.

In 2019, the beach-loving philanthropist El Zonte decided to allocate a multi-year six-figure endowment to El Zonte.

Dubbed the “Bitcoin Beach initiative,” a localized Bitcoin economy has been created in El Zonte, with most businesses now accepting Bitcoin in daily transactions.

About 500 locals use the cryptocurrency to buy everything from haircuts, cleaning and hygiene products, to food, surfing classes and even water service.

ElZontelindo.com explains: “The use of Bitcoin is open to everyone and no one has to worry whether the bank will accept them as a customer or take advantage of them because they don’t have any other option.

“We believe Bitcoin will be everyone’s money and make ‘no banks’ a thing of the past.”

This is because El Salvador is a predominantly cash economy, where about 70% of people do not have a bank account or credit card, CNBC News explains.

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