in a interview Javier Argueta, the legal adviser to the Presidential Palace of El Salvador, and local media clarified the obligations of companies the day before the country’s controversial Bitcoin law Recognize BTC as legal tender It took effect.
The legal adviser to the President of El Salvador stated that companies are required to accept customers’ bitcoins-but once the transaction is completed, they can choose whether to receive BTC or U.S. dollars.
According to a rough translation, Agueta emphasized that companies must “have an electronic wallet” to receive Bitcoin, but “in the transaction […] You have the willingness to accept Bitcoin or U.S. dollars, which is why it is voluntary. “
“If I buy you 1,000 shirts worth 200 dollars, and I want to pay you in Bitcoin, you have a wallet, but in the transaction, when you do this, you have the willingness to receive Bitcoin or U.S. dollars. This That’s why it is voluntary.”
The official added that companies that refuse to accept BTC will violate local regulations. ElSalvador.com’s story states: “According to Argueta, all companies are obliged to use Bitcoin for transactions. Although there is no clear provision in laws and regulations, if companies do not accept it, they will be subject to violations of the Consumer Protection Act. .”
#El Salvador | Capres’ legal counsel Javier Argueta stated that all entrepreneurs who do not use Chivo wallets and refuse to trade with them #Bitcoin They are facing legislation such as the Consumer Protection Law; referrals will be made.
-elsalvador.com (@elsalvadorcom) September 6, 2021
The government’s Chivo wallet allows users to process transfers in BTC and U.S. dollars.The wallet is kept in Cooperation with Mexican cryptocurrency exchange Bitso -It said it is cooperating with Silvergate, a California-based crypto-friendly bank, to facilitate transactions denominated in U.S. dollars.
The app also allows merchants to automatically convert the bitcoin they receive into U.S. dollars.
The clarification comes as local companies are opposing the language in the Bitcoin law that states that merchants “must” accept Bitcoin as a means of payment, and representatives of the private sector are pushing for a rephrasing of the legislation.