The Congress of El Salvador approved last Wednesday, June 9, the Bitcoin Law, an initiative that is supported by the Government of President Nayib Bukele, with 62 votes in favor. The regulations establish that the exchange between the cryptocurrency and the dollar will be established “freely by the market”.
“The Legislative Assembly of El Salvador approved on Tuesday the Bitcoin Law, which will allow the legal course of cryptocurrency, with which the Central American country becomes the first in the world to recognize this cryptoactive as a legal exchange currency”, is part of the note published by the news portal EFE.
The initiative, which 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 Official Gazette.
What is the objective?
According to the decree, the purpose of the law is to regulate Bitcoin as legal tender, unlimited in any transaction and to any title that public or private natural or legal persons require to carry out.
The regulation, which was announced by President Nayib Bukele through Twitter, was introduced to the session of Parliament without further legislative discussion.
“I have just instructed the president of @LaGeoSV (our state geothermal electricity company), to present a plan to offer facilities for mining #Bitcoin with very cheap, 100% clean, 100% renewable energy and without emissions from our volcanoes. This is going to evolve quickly!”, he commented after the law had been approved.
The legislation also indicates that every economic agent must accept bitcoin as a form of payment “when it is offered to him by whoever acquires a good or service” and that the Executive body will create the necessary institutional structure for the circulation of the cryptocurrency, in accordance with what is established in the law.
President Bukele pointed out on his Twitter that “the #LeyBitcoin is ambitious, but simple, it is also well structured so that it has 0 (zero) risk for those who do not want to take risks”. In addition, he indicated that “the Government will guarantee convertibility at the exact value in dollars at the time of each transaction”.
“At the same time, it will bring financial inclusion, investment, tourism, innovation and economic development for our country (…) let no one tell us that we are too small to be big”, he added.