Salvadoran President Nayib Bukele promised at the Bitcoin 2021 conference in Miami over the weekend to submit a draft bill to the country’s legislature that would make Bitcoin legal tender in El Salvador.
On June 9, 2021 at around 10:00 Nayib Bukele tweeted that he officially submitted the Bitcoin bill to the Legislative Assembly of the Republic of El Salvador.
According to U.today, the Legislative Assembly of the Republic of El Salvador voted in favor of the bill, receiving 60 out of 84 votes, but it has not yet been passed by Congress.
This means that Bitcoin may be on the verge of officially becoming legal tender in the Republic of El Salvador. The bill will officially take effect ninety days after it is published in the Official Gazette.
The full text of the Republic of El Salvador’s Bitcoin bill is as follows.
I. In accordance with Article 102 of the Constitution of the Republic, the State has the obligation to promote and protect private enterprise and to create the conditions necessary to increase the wealth of the country for the benefit of the greatest number of inhabitants.
II. The United States dollar was adopted as legal tender pursuant to Legislative Decree No. 201, published in the Official Gazette No. 241, Volume 349, dated December 22, 2000.
III. Approximately seventy percent of the population does not have access to traditional financial services.
IV. The State has the obligation to promote the financial inclusion of its citizens in order to better guarantee their rights.
V. In order to promote the economic growth of the country, it is necessary to approve the authorization of the circulation of a digital currency whose value is fully compatible with the standards of the free market, in order to increase the wealth of the country and benefit the largest number of its inhabitants.
VI. In accordance with the previous considerations, it is necessary to issue basic laws to regulate the legal process of Bitcoin.
The following laws are submitted.
Article 1. The purpose of this law is to regulate Bitcoin as an unrestricted legal tender, which has the power to be free and unrestricted in any transaction that a public or natural or legal person needs to carry out.
The reference in the previous paragraph is without prejudice to the application of the Monetary Integration Act.
Article 2. The exchange rate between Bitcoin and the US Dollar will be freely determined by the market.
Article 3. Prices may be denominated in bitcoins.
Article 4. Taxes can be paid in bitcoin.
Article 5. Bitcoin transactions will not be subject to capital gains tax, just like any fiat currency.
Section 6. For accounting purposes, the US dollar will be used as the reference currency.
Article 7. Every economy must accept bitcoin when offered for payment by a person who obtains goods or services.
Article 8. Without prejudice to the actions of the private sector, the State shall provide alternatives that allow users to transact in Bitcoin and, if they wish, to automatically and instantly convert Bitcoin to U.S. dollars. In addition, the state will advance the necessary training and mechanisms to enable people to be able to conduct bitcoin transactions.
Article 9. The limitations and operational terms of the automatic instant conversion program from bitcoin to U.S. dollars provided by the State will be set forth in regulations to be issued for this purpose.
Article 10. The Executive Branch will establish the necessary institutional structures to implement this Law.
Entry into force and transitional provisions
Article 11. The Central Reserve Bank and the Superintendency of the Financial System shall issue the corresponding regulations within the period referred to in Article 16 of this Law.
Article 12. Due to obvious and well-known facts, those who are unable to conduct bitcoin transactions are excluded from the obligations set forth in Article 7 of this Law. The State will promote the necessary training and mechanisms to enable access to bitcoin transactions.
Article 13. All debts that existed before the entry into force of this Law, expressed in U.S. dollars, may be paid in Bitcoins.
Article 14. Prior to the entry into force of this Law, the State will guarantee the automatic and immediate exchange of Bitcoins through the establishment of a trust fund at the Banco de Desarrollo de El Salvador (BAND). This is necessary for the alternative programs offered by the State mentioned in Article 8.
Article 15. This Law will be exceptional in its application to other laws, and any provision that contradicts this Law will be repealed.
Article 16. This Law shall enter into force ninety days after its publication in the Official Gazette.
Presented in the Blue Hall of the Legislative Assembly of El Salvador on June 8, 2021
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/bitcoin-is-about-to-become-a-fiat-currency-el-salvador-bitcoin-law-full-text/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.