El Salvador has passed legislation to make Bitcoin legal money.

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The Bitcoin Law proposed by President Nayib Bukele was approved by the Salvadoran Congress tonight.

Just before 6 a.m. UTC, the President of El Salvador’s measure to make Bitcoin legal money in El Salvador was passed by Congress with a supermajority.

President Nayib Bukele indicated in a Twitter Spaces chat with 22,000 listeners that he will sign the historic bill either tonight or first thing tomorrow.

“It goes into effect immediately,” he said, clarifying the government would allow 90 days for the infrastructure to be put into place.

He said that accepting Bitcoin would be mandatory for all businesses. “They have to take it by law,” he said of merchants in the country. “If you go to Mexico they have to take your pesos.

“In the case of El Salvador Bitcoin is going to be legal tender just as the US Dollar.”

He revealed that he will be meeting with the International Monetary Fund on Thursday. The government will also be releasing an official Bitcoin wallet (however this will not be mandatory). The government intends to hold $150 million equivalent of Bitcoin in a trust fund in its development bank to assume the risks of merchants.

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Permanent residency will be available for those who invest 3 BTC in El Salvador. Asked if the country would put Bitcoin in its reserve he said there were no immediate plans:

“I don’t know this is evolving very fast. We’re not ruling out having Bitcoin in our reserves in the near future.”

The President said he hasn’t thought of Bitcoin mining but was favorably disposed towards the idea of renewable energy Bitcoin mining.

The Bitcoin law was a bill submitted earlier today after Bukele tweeted that “I’ve just sent the Bitcoin Law to congress,” and uploaded copies of the bill in Spanish and English.

“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,” the bill reads.

The bill includes a list of interesting proposals such as zero capital gains tax on BTC, tax payments allowed in BTC, and economic agents “must” accept BTC as payment when offered by “whoever acquires a good or service.”

According to the bill, the state will provide the infrastructure that enables Bitcoin users to instantly convert from BTC to USD if need be. Additionally, the state will provide “training and mechanisms” to aid citizens unfamiliar with Bitcoin — as many will need to learn how to use the digital asset.

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Interestingly, following Bukele’s latest announcement, he changed his Twitter profile picture to one that features blue laser eyes, as opposed to the red onesusually found in the iconic crypto meme.

Bukele’s progressive crypto action has spurred interest from a number of politicians around Latin America, who have either promoted their own crypto plans or wore red laser eyes in favour of crypto.

Carlitos Rejala, a Paraguayan politician, posted laser eyes on June 7 and promised a Bitcoin announcement later that week.

The next day, Mexican Senator Eduardo Murat Hinojosa announced his intention to “promote and propose a legal framework for crypto coins in Mexico’s lower house.”

While Gabriel Silva, a Panamanian politician, announced plans to introduce a crypto-friendly measure the same day.


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