Here is the meat and potatoes of the law:
Art. 1. 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.
What is mentioned in the previous paragraph does not hinder the application of the Monetary Integration law.
Art. 2. The exchange rate between bitcoin and the United States dollar, subsequently USD, will be freely established by the market.
Art. 3. Prices may be expressed in bitcoin.
Art. 4. Tax contributions can be paid in bitcoin.
Art. 5. Exchanges in bitcoin will not be subject to capital gains tax, just like any legal tender.
Art. 6. For accounting purposes, the USD will be used as the reference currency.
Art. 7. Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service.
Art. 8. Without prejudice to the actions of the private sector, the State shall provide alternatives that allow the user to carry out transactions in bitcoin and have automatic and instant convertibility from bitcoin to USD if they wish. Furthermore, the State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.
This isn't just making Bitcoin legal tender as some publicity stunt/gimmick, it's full on requiring that "every economic agent must accept Bitcoin as payment" as mentioned in Article #7. Meaning if I go to Walmart and try to pay with Bitcoin, by law, Walmart MUST accept my Bitcoin.
This is a bold move for El Salvador and a big milestone for Bitcoin. How do you think this will work out for El Salvador over the coming years? Will other countries follow?
Sidenote: Bitcoin is now considered Forex
Submitted September 07, 2021 at 12:26AM by ShotBot https://ift.tt/3C20H2r
