El Salvador President Sends Draft Bitcoin Bill to Legislature

El Salvador President Sends Draft Bitcoin Bill to Legislature

Making good on his promise at Bitcoin 2021 in Miami over the weekend, El Salvador president Nayib Bukele has sent a draft bill to the country’s legislature that would make the cryptocurrency legal tender there.

What follows is a rough Google translation of the text he tweeted Tuesday. Spanish-speaking CoinDesk staff members are translating it manually and we will update this article, so refresh the page in a bit.

DECREE No. THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR, CONSIDERING: 1. That in accordance with Art. 102 of the Constitution of the Republic, the State is obliged to promote and protect private initiative, generating the necessary conditions to increase national wealth for the benefit of the greatest number of inhabitants. II. That under Legislative Decree No. 201, published in Official Gazette number 241, Volume 349, dated December 22, 2000, the United States of America dollar was adopted as legal tender. III. That approximately seventy percent of the population does not have access to traditional financial services. IV. That it is the obligation of the State to facilitate the financial inclusion of its citizens in order to better guarantee their rights. V. That in order to promote the economic growth of the country, it is necessary to authorize the circulation of a digital currency whose value obeys exclusively free market criteria, in order to increase national wealth for the benefit of the greatest number of inhabitants. SAW . That according to the previous considerations, it is essential to issue the basic rules that will regulate the legal course of bitcoin. THEREFORE, IT DECREES the following: BITCOIN LAW CHAPTER 1GENERAL PROVISIONS Art. 1. The purpose of this law is to regulate bitcoin as legal tender, unrestricted with liberating power, unlimited in any transaction and to any title that natural or legal public or private persons require to carry out. What is mentioned in the previous paragraph is without prejudice to the application of the Monetary Integration Law Art. 2. The exchange rate between bitcoin and the dollar of the United States of America, henceforth dollar, will be freely established by the market. Art . 3. All prices may be expressed in bitcoin. Art . 4. All tax contributions may be paid in bitcoin. Art . 5. Exchanges in bitcoin will not be subject to capital gains tax like any legal tender. Art . 6. For accounting purposes, the dollar will be used as the reference currency. Art . 7. Every economic agent must accept bitcoin as a form of payment when it is offered to him by whoever acquires a good or service. Art . 8. Without prejudice to the actions of the private sector, the State will provide alternatives that allow the user to carry out transactions in bitcoin, as well as having automatic and instantaneous convertibility from bitcoin to dollar if desired. The State will promote the necessary training and mechanisms so that the population can access bitcoin transactions. Art . 9. The limitations and operation of the alternatives for automatic and instantaneous conversion from bitcoin to dollar 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 for the purposes of applying this law. FINAL AND TRANSITIONAL PROVISIONS Art. 11. The Central Reserve Bank and the Superintendency of the Financial System will issue the corresponding regulations within the period mentioned in Art. 16 of this law.Art . 12. They are excluded from the obligation expressed in Art. 7 of this law, who by a notorious fact and obviously do not have access to the technologies that allow executing transactions in bitcoin. 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 dollars, existing prior to 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 in the Development Bank of El Salvador (BANDESAL), the automatic and instantaneous convertibility of bitcoin to dollar of the alternatives provided by the State mentioned in Art.8. Art . 15. This law will have a special character in its application with respect to other laws that regulate the matter, being repealed any provision that contradicts it. Art . 16. This decree shall enter into force ninety days after its publication in the Official Gazette. GIVEN IN THE BLUE ROOM OF THE LEGISLATIVE PALACE: San Salvador, on June 8, 2021.

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