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A bill to get bitcoin legal tender in El Salvador

President of the Salvadoran bill to make bitcoin legal tender in El Salvador just before 6:00 UTC Congress with a supermajority.

In an interview with Twitter Spaces, which began just after 5:00 UTC with 22,000 listeners, President Nayib Bukele said he would sign a historic law tomorrow or the first thing tomorrow.

“It comes into force immediately,” he said, adding that the government would allow 90 days to deploy the infrastructure.

He said accepting bitcoins would be mandatory for all businesses. “They have to take it by law,” he said of the country’s traders. “If you’re going to Mexico, he has to take your peso.”

“In the case of El Salvador, bitcoin will be legal tender, as will the US dollar.”

He revealed that he will meet with the International Monetary Fund on Thursday. The government will also issue an official bitcoin wallet (but this will not be mandatory). The government intends to hold $ 150 million bitcoins in a trust fund at its development bank to take on the risks of traders.

Permanent residence will be available to those who invest 3 BTC in El Salvador. Asked if the country would put bitcoins in its reserve, he replied that there were no immediate plans:

“It simply came to our notice then. We do not rule out that we will have bitcoins in our reserves in the near future. “

The president said he did not think about bitcoin mining, but was in favor of the idea of ​​mining bitcoins from renewable sources.

The Bitcoins Act was a bill introduced earlier after Bukele tweeted that “I just sent the Bitcoins Act to Congress,” and uploaded copies of the law in Spanish and English.

“The purpose of this law is to regulate bitcoins as unlimited legal tender with liberating power, unlimited in any transaction and for any title required by public or private natural or legal persons,” the bill states.

The bill contains a list of interesting proposals, such as zero capital gains tax on BTC, tax payments permitted by BTC and economic operators “must” accept BTC as payment if they are offered “whoever obtains the goods or services”.

Under the bill, the state will provide the infrastructure to allow bitcoin users to convert from BTC to USD immediately if needed. In addition, the state will provide “training and mechanisms” to help citizens who do not know bitcoins – so many people will have to learn how to use a digital asset.

Interestingly, after the latest announcement, Bukele changed his profile picture on Twitter to one with blue laser eyes, unlike the red ones, which are usually found in the iconic cryptocurrency.

Bukele’s progressive crypto move has sparked the enthusiasm of a number of politicians across Latin America who have either promoted their own crypto proposals or deployed red laser eyes to support cryptocurrency.

On June 7, Paraguayan Congressman Carlitos Rejala published laser eyes and promised a bitcoin announcement later this week.

The next day a Mexican senator Eduardo Murat Hinojosa he revealed that he planned to “promote and propose a legal framework for cryptocurrencies in the lower house of Mexico.”

While Panamanian Congressman Gabriel Silva also said he was due to present a bill on cryptocurrencies on the same day.



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