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According to a 2001 law on monetary unification in the country, wages and fees may only be paid in colónes or dollars.
El Salvador’s Minister of Labor and Social Welfare, Rolando Castro, has stated that the government is debating whether firms in the nation may pay their employees in Bitcoin.
According to local radio station 107.7 Fuego GMV, Castro has discussed the issue of employers paying their workers in Bitcoin (BTC) with officials from the Ministry of Finance and the Ministry of Economy. His remarks come a week after the country’s Legislative Assembly approved the use of the cryptocurrency as legal tender.
Salary and fees may only be paid in colónes or dollars, according to El Salvador’s 2001 Law of Monetary Integration, which laid the groundwork for the ultimate replacement of the Salvadoran colón with the US dollar. However, the former is no longer often used in the Central American country.
It is unclear if the country’s acceptance of Bitcoin as legal money would supplement or replace existing legislation. According to President Nayib Bukele’s proposed bill, “tax contributions can be paid in Bitcoin” and “the USD will be used as the reference currency for accounting purposes.”
Bukele has gone to social media to promote cryptocurrencies and mining in El Salvador after initially declaring he would be presenting pro-Bitcoin legislation at the Bitcoin 2021 conference in Miami earlier this month. Last Monday, the president directed that some facilities be made accessible to Bitcoin miners by the state-owned geothermal power firm.