El Salvador’s President Nayib Bukele stated that the bill to make Bitcoin a legal tender has almost “a 100% chance” that it will be passed tonight. The bill is currently being debated, but since his party has 64 seats out of 84 seats, he is expected to sign the law first later tonight or tomorrow. Once the bill is passed, El Salvador may become the first country in the world to recognize Bitcoin as a legal currency.
The bill was proposed by El Salvador’s President Nayib Bukele. If passed by Congress and become law, Bitcoin and the U.S. dollar will be considered legal tender. Bukele announced that he intends to introduce the bill at the Bitcoin Miami conference held with Strike founder Jack Mallers on Saturday.
“In order to promote the country’s economic growth, it is necessary to authorize the circulation of a digital currency whose value fully complies with free market standards, in order to increase the country’s wealth and benefit the general public.” The bill said.
According to the provisions of the Act:
Commodities may be priced in Bitcoin
You can pay taxes with Bitcoin
Bitcoin transactions will not face capital gains tax
The U.S. dollar will still be the reference currency for Bitcoin prices
Bitcoin must be accepted as a payment method by “every economic agent”
The government will “provide alternatives” to enable crypto transactions
The bill stated that 70% of El Salvador’s population does not have access to financial services, and stated that the federal government will “promote the necessary training and mechanisms” to allow people to use cryptocurrency.
The bill stated that the government will also establish a trust fund in the El Salvador Development Bank, which will enable “an instant conversion of bitcoin to the US dollar.”
“[It] is an obligation of the state to promote the financial inclusion of its citizens in order to better protect their rights,” the bill said.
After Booker’s new Thought Party and allies won an absolute majority in Congress earlier this year, the bill is expected to be passed easily by the legislature.
In fact, it received 60 votes (possibly 84 votes) within a few hours of being proposed. Late Tuesday, the Finance Committee of the Legislative Assembly approved the bill.
According to the provisions of the bill, it will take effect within 90 days.
Post time: Jun-10-2021