Despite the fact that businesses in El Salvador must accept Bitcoin transactions, a government official has stated that they have the option of choosing whether to take BTC or US dollars as payment for those transactions.
On the day before the country’s controversial Bitcoin Law, which recognizes bitcoin as legal cash, went into effect, Javier Argueta, the legal counsel to El Salvador’s Presidential House, spoke to local media to clarify the requirements of businesses.
According to the legal counsel for the President of El Salvador, businesses are required to accept Bitcoin from clients — but they have the option of choosing whether or not they would get Bitcoin or US dollars once the transaction is finalized.
The following is a rough translation of what Agueta said: “It is mandatory for businesses to have the electronic wallet” in order to accept Bitcoin; but, “in the transaction […] you have the desire to receive Bitcoin or dollars, which explains why it is voluntary.”
“If I buy you 1,000 shirts that cost $200 and I’m going to pay you in Bitcoin, you have the wallet, but in the transaction, when you do it, you have the will to receive Bitcoin or dollars, that is why it is voluntary.”
Businesses that refuse to accept BTC, according to the official, will be operating in breach of municipal legislation. According to the story on ElSalvador.com.
According to Argueta, ”all businesses are obliged to make the transaction in Bitcoin and despite the fact that neither the law nor the regulations clearly state it, if the business does not accept it, it is exposed to referrals of infractions to the Consumer Protection Law.”
#ElSalvador | Según Javier Argueta, asesor jurídico de Capres, todos los empresarios que no hagan uso de la billetera Chivo y se nieguen a hacer la transacción con #Bitcoin se enfrentan a legislaciones como Ley de protección de consumidor; se harán remisiones.
— elsalvador.com (@elsalvadorcom) September 6, 2021Users of the government’s Chivo wallet can make transfers in both Bitcoin and U.S. dollars using the wallet. In conjunction with the Mexican cryptocurrency exchange Bitso — which claims to be working with the crypto-friendly bank Silvergate in California to handle transactions denominated in US dollars — the wallet is maintained and updated.
Merchants can also use the software to automatically convert the Bitcoin they receive into US dollars if they like.
While local businesses are pushing back against language in the Bitcoin Law that stipulates that merchants “must” accept Bitcoin as a form of payment, private sector groups are advocating for the legislation to be rewritten.
