Only a week back, the proposal to embrace cryptocurrencies by President Nayib Bukele was accepted by Congress, making El Salvador the world’s first country to recognize Bitcoin as legal tender.
The nation currently lacks its currency and instead relies on the United States dollar as legal money. Bukele stated that using Bitcoin to send remittances home would be beneficial to Salvadorans residing overseas.
In a recent report by Diario El Mundo, a local El Salvador news portal, it was mentioned that Rolando Castro, Minister of Labor and Social Welfare, stated the Executive is analyzing the possibility that salaries are paid in bitcoins.
Salaries are being analyzed by the Minister of Finance, the Ministry of Economy and in due course, there will be a full meeting with the government cabinet to define these types of monetary aspects that have to do with the legislation that has been approved in the Legislative Assembly, but it is still too early to be able to advance criteria.
Further stating, Minister Castro maintained that there is optimism about the future of the Bitcoin Law and its impact on the economy, which he said will have positive effects. The official considered that the implementation of the said legal framework will boost investment and employment.
However, In a Wednesday tweet, Rolando Castro denied local reports which claimed that his ministry had begun analyzing the possibility of Bitcoin-based salaries with officials from the Ministry of Finance and the Ministry of Economy on Monday.
Castro said that he was only responding to a question, saying it was “too early to talk about salaries.” According to the official, he is now concentrating on finding more and better employment for El Salvadoreans. “Monetary matters are handled by the economic cabinet, which I am not a member of,” he added.
Salary and fees may only be paid in colónes or dollars, according to El Salvador’s 2001 Law of Monetary Integration, which established a legal foundation for the replacement of the Salvadorean colón with the United States dollar. It’s still unclear whether El Salvador’s acceptance of Bitcoin as legal money would supplement or replace existing legislation.
As per President Nayib Bukele’s proposed bill, “tax contributions can be made in Bitcoin” and “the USD would be utilized as the reference currency for accounting reasons.”
New to Crypto? Enroll in Cryptocurrency Course at Todayq Education.