Bitcoin Legalization Risks

Following the approval of the Bitcoin Law in El Salvador by the members of the Legislative Assembly, which creates a legal framework that recognizes this digital currency as legal tender in the country, the IMF warns that financial and legal risks have arisen.

Friday, June 11, 2021

With the approval of the Law, the State will guarantee, through the creation of a trust in the Development Bank of El Salvador (BANDESAL), the automatic exchangeability of bitcoin to dollars. The exchange value of this cryptocurrency to dollar will be established by the market, according to the Law.

The news has not been well received by all sectors, since for the International Monetary Fund (IMF) this decision generates risks for the economy.

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Gerry Rice, IMF spokesman, told Elmundo.sv that "... the adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are therefore closely following developments and will continue our consultations with the authorities."

The article adds that "... the price of bonds showed declines in the day on Monday, June 7 after it became known that El Salvador would seek to adopt bitcoin as a currency of course and would coexist with the dollar. This provision was approved at midnight on Tuesday and Wednesday, without study and consultations with experts, by the deputies of the Legislative Assembly."

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Coincaex to Launch Operations in El Salvador

June 2021

After El Salvador approved a legal framework that recognizes Bitcoin as a legal tender, the cryptocurrency exchange Coincaex announced that at the end of June it will open an office in the country.

On June 8, the Legislative Assembly of El Salvador approved the Bitcoin Law, a legal framework that recognizes this digital currency as legal tender in the country.

Cryptocurrencies, Uncertainty and Expectations

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Following the approval of the legal framework that recognizes Bitcoin as a legal tender in El Salvador, one out of two local businessmen are concerned that the circulation of the cryptocurrency is mandatory and one out of three are distrustful of this change in the laws.

The Chamber of Commerce and Industry of El Salvador carried out a survey among its members, businessmen in general and citizen consumers to know the expectations of the productive sector regarding the implementation of the cryptocurrency.

Bitcoin Becomes Legal Tender

June 2021

Following the approval of the Bitcoin Law in El Salvador by the deputies of the Legislative Assembly, there is now a new legal framework that recognizes this digital currency as legal tender in the country.

The President of the Republic, Nayib Bukele, sent to the Legislative Assembly, through the Minister of Economy, Maria Luisa Hayem, the bill to allow the use of Bitcoin in the country.

Cryptocurrencies are Illegal in Guatemala

February 2021

After multiple consultations, the Superintendency of Banks announced that virtual currencies or assets such as Bitcoin, Ethereum, Ripple and other similar ones, are not legal tender in the country.

The Superintendency of Banks, derived from the different consultations made by economic and financial agents regarding the use of virtual currencies or assets, known as cryptocurrencies, informs the population that in accordance with the Monetary Law, the monetary unit of Guatemala is the Quetzal and only the Bank of Guatemala can issue banknotes and coins within the territory of the Republic, therefore virtual currencies are not legal tender in the country, explains an official statement.

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