El Salvador becomes 1st country to make Bitcoin Legal Tender: Transcript of the law
El Salvador in Central America becomes the first country in the world to make Bitcoin Legal Tender
This is amazing, and seemed to take the world by surprise. South America is a remarkable place in many ways. Last year the President of Venezuela surprised the world by refusing to sell his oil for U.S. Dollars breaking an industry standard and sold his oil for a new cryptocurrency called the Petro. Then he issued machinery to all merhchants in Venezuela so that they could accept the Petro for all transactions. He did not however replace the Venezuelan currency with this Petro cryptocurrency. The President of El Salvador has done something historic and now we wait for the result!
As a Central American Country with good weather year round, El Salvador was perhaps better known for beautiful Resorts
Beautiful National Parks
And beautiful churches...
But on this date El Salvador Makes History!
Bitcoin history is made, as El Salvador, a small country in Central America makes Bitcoin legal Tender valid for all purchases and as currency free from all capitol gains taxes.
Yes it was more than a laser eyes meme, it was the real thing!
Here’s the official proclamation signed into law by the President of El Salvador: Navis Armando Bukele Ortiz.
This is the actual Transcript of the legislative bill passed into law!
DECREE No. THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR CONSIDERING: That in accordance with Article 102 of the Constitution of the Republic, the State is under the obligation to promote and protect private enterprise, generating the necessary conditions to increase national wealth for the benefit of the greatest number of inhabitants. That under Legislative Decree № 201, published in Official Gazette number 241, Volume 349, dated December 22, 2000, the United States dollar was adopted as legal tender. That approximately seventy percent of the population does not have access to traditional financial services. That it is the obligation of the state to facilitate the financial inclusion of its citizens in order to better guarantee their rights. That in order to promote the economic growth of the nation, it is necessary to authorize the circulation of a digital currency whose value answers exclusively to free-market criteria, in order to increase national wealth for the benefit of the greatest number of inhabitants. That according to the previous considerations, it is essential to issue the basic rules that will regulate the legal course of bitcoin. THEREFORE, DECREES the following: BITCOIN LAW CHAPTER I GENERAL DISPOSITIONS Art. 1. The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out. What is mentioned in the previous paragraph does not hinder the application of the Monetary Integration law. Art. 2. The exchange rate between bitcoin and the United States dollar, subsequently USD, will be freely established by the market. Art. 3. Prices may be expressed in bitcoin. Art. 4. Tax contributions can be paid in bitcoin. Art. 5. Exchanges in bitcoin will not be subject to capital gains tax, just like any legal tender. Art. 6. For accounting purposes, the USD will be used as the reference currency. Art. 7. Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service. Art. 8. Without prejudice to the actions of the private sector, the State shall provide alternatives that allow the user to carry out transactions in bitcoin and have automatic and instant convertibility from bitcoin to USD if they wish. Furthermore, the State will promote the necessary training and mechanisms so that the population can access bitcoin transactions. Art. 9. The limitations and operations of the alternatives of automatic and instantaneous conversion from bitcoin to USD provided by the State will be specified in the Regulations issued for this purpose. Art. 10. The Executive Branch will create the necessary institutional structure to apply this law. FINAL AND TRANSITIONAL PROVISIONS Art. 11. The Central Reserve Bank and the Superintendency of the Financial System shall issue the corresponding regulations within the period mentioned in Article 16 of this law. Art. 12. Those who, by evident and notorious fact, do not have access to the technologies that allow them to carry out transactions in bitcoin are excluded from the obligation expressed in Art. 7 of this law. The State will promote the necessary training and mechanisms so that the population can access bitcoin transactions. Art. 13. All obligations in money expressed in USD, existing before the effective date of this law, may be paid in bitcoin. Art. 14. Before the entry into force of this law, the State will guarantee, through the creation of a trust at the Banco de Desarrollo de El Salvador (BANDESAL), the automatic and instantaneous convertibility of bitcoin to USD necessary for the alternatives provided by the State mentioned in Art. 8. Art. 15. This law will have a special character in its application concerning other laws that regulate the matter, repealing any provision that contradicts it. Art. 16. This decree will take affect ninety days after its publication in the Official Gazette. GIVEN AT THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, on the 8th day of June 2021.
And this may be the start of a trend...
In a trend that was started by El Salvador's President, Nayib Bukele, politicians from several Latin American countries have begun calling for the adoption of Bitcoin as legal tender. The interest in Bitcoin seems to be motivated by inflation, the reliance on the U.S. dollar and a way to attract tech entrepreneurship.
source
And according to Yahoo Finsnce, Bitcoin sees positive price action as it posts the biggest gain in two weeks!
Bitcoin’s price jumped Wednesday by the most in two weeks amid mounting inflation concerns and hopes for mass adoption after El Salvador’s parliament approved the cryptocurrency as legal tender. The cryptocurrency was changing hands near $36,500 at press time, having picked up from a bid near $31,000 late Tuesday. The price was up 9% since 0:00 coordinated universal time, the biggest gain since May 24.
Here on Hive we have authors from the region, and I recommend you check out their posts.
This one written by @nirvanna3003 is short, but well written post with great regional insight into what conditions made this possible in El Salvador and which May create a domino like effect across both Central and South America.
It is written that the first domino requires the most energy and the rest just fall before the wave. Read @nirvanna3003 post here
History every day
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance.
Read more of shortsegments articles here: https://leofinance.io/@shortsegments
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