El Salvador’s President Submits Bitcoin Legislation to Congress

Following up on a promise made at the Bitcoin 2021 conference in Miami over the weekend, El Salvador’s President Nayib Bukele has submitted a draft bill to the country’s legislature that would make the cryptocurrency legal tender there. Article 102 of the legislature states that it is necessary to issue basic rules to regulate the legal process of Bitcoin.

in:

1. The purpose of this law is to regulate Bitcoin as legal tender, without restriction of free power,

2. The exchange rate between Bitcoin and the U.S. dollar will be freely determined by the market.

3: All prices can be expressed in Bitcoin.

4: All tax contributions can be paid in Bitcoin.

5: Bitcoin transactions will not be subject to capital gains tax like any fiat currency.

6: For accounting purposes, the U.S. dollar will be used as the reference currency.

Article 8: Every economic entity must accept Bitcoin as a method of payment. Whoever receives goods or services must accept Bitcoin.

14: Until this Law comes into force, the State will guarantee, through the creation of a Trust Fund at the El Salvador Development Bank (BANDESAL), the automatic and instant convertibility of Bitcoins for the State-provided alternatives mentioned in Article 8.

15: This law is specific in its application and any provisions that conflict with it are repealed as compared to other laws regulating the matter.

16: This decree shall enter into force ninety days after its publication in the Official Gazette.