All businesses in El Salvador must accept bitcoin as a form of payment

Today it has become a reality, the Legislative Assembly of El Salvador has taken the definitive step to transform bitcoin into legal tender in the country, it has approved the law proposed by its president, Nayib Bukele.

The decision is controversial, since in this way companies are obliged to accept bitcoin as a means of payment, something quite complex if we take into account the oscillation of the currency.

Even so, they indicate that this use of bitcoin will not affect the monetary integration law, and they emphasize that the dollar will continue to be their reference.

The problem is that the exchange between bitcoin and the dollar will be set by the market freely, and that can have tremendous consequences, with very different prices between one trade and another.

Any price, of any trade, may be expressed in bitcoin, and it is even possible to pay taxes with this currency. It will not be possible for a business to reject the payment in bitcoin, so it will be necessary to establish a viable network that allows the immediate reception of the payment in businesses that do not even know what we are talking about. To solve this possible problem, the State says it will provide alternatives so that the user can make transactions in bitcoin without having to have much knowledge about the matter.

Exceptions and problems

On the other hand, in one of the articles they comment that those who obviously do not have access to the technologies that allow transactions in bitcoin are excluded from this obligation, thus opening the doors to a gigantic number of businesses in the country.

It must be taken into account that Bitcoin only supports 7 transactions per second, so the limits of the technology itself make it not feasible to use bitcoin as a day-to-day currency, no one is interested in waiting in a supermarket checkout until your transaction is approved, which could take hours if everyone is constantly trading.

To justify this law, Nayib Bukele commented that Approximately 70% of the population does not have access to traditional financial services, and they believe that bitcoin could be the solution to this problem.

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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