Vice President Ulloa said that the country should not fall behind in the adoption of cryptocurrencies. The bill will be available to the public on September 15th, during the bicentennial of the independence of El Salvador.
Nayib Bukele, president of El Salvador, has already prepared a draft of the new National Constitution of the Central American country. The leader wants that body of rules to establish cryptocurrencies or digital currencies as legal tender. However, he did not specify which ones the law will cover.
Vice President Félix Ulloa noted that the modification to the Constitution regarding digital currencies proposes using different ones from the physical ones. The government official said that the legislation of El Salvador must be ready amid the arrival of cryptocurrencies. He stressed that the country should not fall behind in adopting these assets, according to the website of Salvadoran newspaper La Prensa Gráfica.
The draft law is not yet available to the public, and the vice president has only given some details to various agencies. President Nayib Bukele will introduce the entire document to the Legislative Assembly on September 15th, during the bicentennial of the independence of El Salvador.
The government recently submitted the bill to foreign diplomatic delegations in El Salvador. Soon, they will also bring it before non-governmental organizations in the country.
The draft of the new Salvadoran Constitution also covers issues related to the functioning of the State. It will include aspects such as the duration of the presidential term, which will be longer, and the replacement of the Supreme Electoral Tribunal.
Bitcoin Will Be the Virtual Currency of El Salvador
On September 7th, Bitcoin (BTC) will become legal tender at par with the US dollar in El Salvador. That will occur after the Legislative Assembly approved the bill of President Bukele on June 9th. Then, the main legislative body of the country said 62 of the 84 deputies voted in favor.
There have been many diverse discussions and opinions as a result of this decision of the Salvadoran government. The Bank of America stated that this adoption of the first cryptocurrency would improve the economy of that Central American country. They believe that there will be progress in digitizing, sending, and receiving remittances, besides opening to foreign trade.
However, other financial institutions say it is an inconvenient alternative. For example, JP Morgan Bank maintains that a lack of liquidity of Bitcoin would not benefit the Salvadoran economy. Besides, the president of the IDB, Mauricio Claver-Carone, considers that adopting the cryptocurrency as legal tender will not help strengthen the economy.
The Financial Action Task Force (FATF) stated that international regulators could frame Bitcoin. Meanwhile, the Salvadoran population still has many doubts about this technology, despite its progress in legislative bodies.
The International Monetary Fund (IMF) commented that Bitcoin could have disastrous consequences for countries that adopt it as a national currency. Although their position on the matter is official, they did not mention any particular country.
By Alexander Salazar
