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• The proposal received 62 out of 84 votes in the Salvadoran Congress.
• Bukele said that he would not delay and would sign the bitcoin law as soon as possible.
• Appropriate training and mechanisms will be offered to the citizens who are unfamiliar with crypto.
A few days ago, El Salvador’s president, Nayib Bukele, declared bitcoin as a legal tender in a tweet. Today on June 9, 2021, Bukele, in another tweet, has announced that a supermajority has approved Bitcoin Law in the Salvadoran Congress. The proposal received 62 out of 84 votes. For the first time, a world leader has accepted and acknowledged cryptocurrency as an official form of payment. Undoubtedly, this is a giant milestone for bitcoin and other cryptocurrencies.
Compulsory for all Salvadoran Businesses to Accept Bitcoin
Bukele said that he would not delay and would sign the bitcoin law as soon as possible. He adds that the law would go into effect immediately, and 90 days would be allowed to take care of the infrastructure regarding it. Bitcoin is now an official payment form, and all businesses in the country must accept bitcoin payments. He adds that just like Pesos are taken in Mexico, people in El Salvador will have to buy bitcoin. Commission Financiera, in a tweet, announced that they issued a favourable opinion towards the proposal given by President Bukele.
No Immediate Plans for Putting Bitcoin in a Reserve
He announced that he would have a conference with the International Monetary Fund on the coming Thursday. In addition, the government plans to store $150 million equivalent of Bitcoin in a trust fund in its development bank to protect the merchant. Soon, a bitcoin wallet will also be launched for the El Salvador citizens, which won’t be mandatory for all. Bukele said that there weren’t immediate plans for putting bitcoin in reserve. He added that this is all evolving too fast for them and so they won’t rule out the possibility of having bitcoin in their reserve.
What does Bukele’s Bill to the Government Propose?
As per the bill, which Bukele suggested to the government, its main aim is to regulate bitcoin as an unrestricted legal tender. Upon acceptance of the bill, bitcoin will be exercised as an official form of currency with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out. Moreover, the state will fund the infrastructure, which will allow the users to convert bitcoin to the US dollar if needed instantly. Appropriate training and mechanisms will be offered to the citizens who are unfamiliar with crypto.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
