- The El Salvador Congress voted to make Bitcoin legal tender in the country
- Businesses will be required to accept the top crypto by law
- President Nayib Bukele is now looking into renewable energy for Bitcoin mining
The Salvadorian Congress passed President Nayib Bukele’s Bitcoin bill. The bill was passed in a landslide vote today at 10 am (GMT -6). The final vote was 62 in favor of the bill out of 84 votes.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
— Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
Going forward, all El Salvador businesses will accept BTC as legal tender. President Bukele said that the law goes into effect immediately and businesses will have to take BTC by law. He stated,
In the case of El Salvador Bitcoin is going to be legal tender just as the US Dollar.
Additionally, the bill states,
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.
As such, all economic agents must accept BTC payments from anyone who acquires goods or services from them.
President Bukele is also exploring using renewable energy to power Bitcoin mining in the country. The President described using geothermal energy sources from volcanoes for bitcoin mining. “The energy would be cheap, 100% clean, 100% renewable power,” according to President Bukele.
However, to mitigate some of the risk businesses will face transacting in Bitcoin, the state’s development bank will hold $150 million equivalent of BTC in trust. The state will use the fund to buy Bitcoin from citizens over time.
Apart from granting BTC legal tender status, the bill also includes several concessions. For instance, zero capital gains tax on BTC and tax payments in BTC. Also, El Salvador is offering permanent residency to anyone who invests 3 BTC in the country.
To facilitate the transition, Strike is building a Bitcoin wallet, on behalf of the El Salvador government, that Salvadorians can use. In addition, the government will provide a way for citizens to instantly convert BTC to US$. The state will also host training sessions for those unfamiliar with using BTC.
Finally, the El Salvadorian Bitcoin law has inspired several Latin American countries to show their Bitcoin support. Also, in an unexpected plot twist, American President Joe Biden’s technology advisor just disclosed that his largest personal investment in Bitcoin.