El Salvador's Bitcoin Law: Main Highlights

Updated: Jul 6, 2021

Draft of El Salvador's Bitcoin Law has been proposed. Its main highlights are:


(i) Prices can be denominated in Bitcoin. Taxes can be paid in Bitcoin.


(ii) As Bitcoin is made legal tender, any appreciation in value will not be subject to capital gains tax.


(iii) Payment in Bitcoin cannot be refused, including for past debts, except when creditors demonstrably lack technological access.


(iv) Sovereign guarantee for Bitcoin convertibility into USD.


(v) State will promote technologies that enable instant USD convertibility for Bitcoin payments.


Important Disclaimer: The information provided herein this article is our interpretation and understanding of the law. The legal analysis presented hereinabove is not given for application to any specific set of facts or circumstances peculiar to you or your organization. You may rely on the write-up for your peculiar facts or circumstances at your sole risk only. We will not be liable, answerable or responsible to you under any client-attorney relationship.




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