Law making Bitcoin legal tender in El Salvador comes into effect in 30 days

Exactly two months ago, the Congress of El Salvador approved a bill that makes Bitcoin a legal tender in the country.

With euphoria, the President of El Salvador, Nayib Bukele, announced on twitter his proposal on the law, in a few weeks it was approved by Congress unanimously by 62 of 82 votes.

Moving into a completely new world, the country saw a positive response from citizens, even small entrepreneurs began to adopt cryptocurrency as a form of payment, with El Salvador being a country without its own currency.

Market in El Salvador accepting Bitcoin
Market in El Salvador accepting Bitcoin

Bitcoin law

The Bitcoin Law was approved by Congress on June 9, it begins to apply in the country in 30 days, as stipulated in the document presented by the Legislative Assembly.

There are some interesting points in the proposal, for example, although the use of Bitcoin is not mandatory, the law states that the prices of products and services can be expressed in Bitcoin, as well as financial institutions can accept Bitcoin as a form of payment.

The government of El Salvador made explicit in the document presented that before the law takes effect, a trust must be created in the BANDESAL (development bank) of El Salvador to allow the instant convertibility of bitcoin into dollars.

For now, the government of El Salvador seems to be really committed to both adoption and training in the use of cryptocurrency in the country, even allowing citizens to be able to pay taxes with Bitcoin.

Bitcoin adoption increasing

The latest euphoria in the cryptocurrency market had a boost in the issue of adoption and interest in Bitcoin investments, something “new” due to the fact that in previous cycles we didn’t have the same response.

We are witnessing a change, or better said, a migration to a new form of money and market that will certainly be a slow but safe process.