The Legislative Assembly of El Salvador adopted a bill recognizing Bitcoin as an official payment instrument in the country on a par with the US dollar.
— Asamblea Legislativa (@AsambleaSV) June 9, 2021
The bill was supported by 62 out of 84 parliamentarians, 17 opposed, and one abstained. It will enter into force 90 days after its publication in the official government gazette.
On June 6, El Salvador’s President Nayib Bukele announced plans to legalize bitcoin in the country. On June 9, he published a full document that calls for the use of digital gold to set prices and pay taxes.
— Nayib Bukele ?? (@nayibbukele) June 9, 2021
“Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service,” the document says.
Bitcoin transactions are not subject to capital gains tax, like any other transactions with payment.
El Salvador guarantees an instant automatic conversion of bitcoin to the US dollar, which will remain the country’s base currency. To do this, the authorities will launch a $ 150 million trust fund to buy a digital asset from the public. The government is also considering storing bitcoin on a balance sheet.