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El Salvador passes law that legalizes the use of bitcoin

2021-06-09T16:20:07.067Z


The Legislative Assembly of El Salvador approved this Wednesday a law that makes bitcoin a currency for legal use.


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(CNN Spanish) -

What has not happened in any country in the world, happened in the Legislative Assembly of El Salvador.

The legislative body of the Central American country approved in the early hours of this Wednesday the law that turns bitcoin into a currency for legal use, like the dollar, in a decision that the president of El Salvador, Nayib Bukele, described as "historic."

The so-called Bitcoin Law, which was approved with the votes of 62 deputies out of a total of 84, establishes in article 7 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. ”. 

What does the new law say?

“In every restaurant, hotel, bank, personal transaction, if you want to sell a car, everything can be paid for with bitcoins or dollars.

Bitcoin will be treated as a national currency, everyone will have to accept it, ”Bukele said during a virtual chat, after the law was approved in the Legislative Assembly. 

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The regulations also establish which obligations previously contracted may be paid with the cryptocurrency.

It adds that for accounting purposes the dollar will be used as the reference currency while the exchange rate between the two "will be freely established by the market," according to article 2 of the law. 

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Controversial decision

“We are the first country in the world to adopt this currency, which already circulates in our nation.

For example, on El Zonte beach, some businesses have already begun to serve tourists who cancel their services through bitcoins, ”said deputy Bladimir Barahona for the ruling Nueva Ideas. 

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For its part, the opposition raised the need to study well the measure that was presented by President Bukele, through the Minister of Economy, just hours before it was approved.  

“We are talking about the monetary policy of the country.

You cannot make decisions without prior studies, bitcoin is very volatile, "said deputy Rodrigo Ávila for the opposition Nationalist Republican Alliance (Arena). 

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However, Bukele raised during the virtual chat that, before the law takes effect, the government will create a trust through the Development Bank of El Salvador to guarantee the exact conversion into dollars when someone makes a transaction through bitcoins. .  

“We will have an equivalent of US $ 150 million in bitcoins, but for now we have nothing.

We will provide those dollars and we will get the bitcoins in exchange, ”the president explained.

BitcoinCryptocurrenciesEl Salvador

Source: cnnespanol

All news articles on 2021-06-09

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