Huobi Crypto News x El Salvador’s Legislature Votes to Adopt Bitcoin as Legal Tender

This article was first published on Huobi Group - Medium
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Credits to Coindesk and written by Nikhilesh De!

El Salvador officially recognizes as legal tender.

In an early Wednesday vote, a supermajority of the nation’s legislature voted in favor of President Nayib Bukele’s proposal for the Latin American nation to adopt bitcoin. The president intends to sign the bill into law later tonight or early in the morning.

Sixty-two members of the legislature voted in favor of the bill, with 19 opposed and three abstentions.

Bukele provided further details about his vision, pitched as an effort to boost financial inclusion in a country where only 30% of citizens have access to financial services, in a Twitter Space conversation early Wednesday morning hosted by Nic Carter of Castle Island Ventures and Coin Metrics. Users won’t necessarily have to use a government wallet, Bukele said.

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Bukele also said in the same Twitter Space conversation that the country is designing a new law that would grant permanent residency to any individual who invests three BTC into El Salvador’s economy.

The bill that was just passed will mandate all businesses to accept bitcoin for goods or services, but the government will act as a backstop for entities that aren’t willing to take on the risk of a volatile cryptocurrency, the president said.

A trust that the government will set up at the Development Bank of El Salvador to instantly convert bitcoin to U.S. dollars will assume merchants’ risk, he said. It will hold about $150 million in dollars.

“If there’s an ice cream parlor, he doesn’t really want to take the risk, he has to accept bitcoin because it’s a mandated currency, but he doesn’t want to take the risk of convertibility, so he wants dollars deposited in his banking account, when he sells the ice cream, he can ask the ...

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