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.
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.
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.
With the approval of the reforms to the Credit Card System Law, in El Salvador it will be banned to charge interest on surcharges generated by arrears.
The reforms also establish that banks must deliver free of charge settlements and cancellations of credit cards, physically or electronically, at the latest within 24 hours, while the documents of obligation or promissory notes that the debtor has signed must be returned within 5 business days maximum, informed the Legislative Assembly:
The builders' guild in El Salvador is preparing a law proposal, which provides for the approval of preferential interest rates on loans for home purchases.
The proposal to be presented by the Salvadoran Chamber of Construction Industry (CASALCO) will be applicable for bank loans to low- and middle-income families who purchase their first home.
Financial operators who allow transactions to be made using mobile phones must have support capital and put a limit on the amount of transactions.
The project in consultation with the private sector was prepared jointly by the Superintendency of the Financial System (SSF) and the Central Reserve Bank (BCR).
"It is not because they are prohibited (financial transactions on devices), but we must normalize them, because if there are operations which are not regulated in the future may end up being something abnormal," said Victor Ramirez, chief of the SSF.
A bill is to be submitted to Congress which intends to regulate banking transactions via phones.
The initiative will be presented in the next few days by the Central Reserve Bank (BCR) and the Superintendency of the Financial System (SSF), said the president of the BCR, Martha Evelyn de Rivera.
"Firstly we will regulate mobile financial services, which are all the low-value electronic transfers.
The fulfillment of the obligation to report on foreign bank accounts belonging to U.S. citizens has been postponed to July 1, 2014.
This was announced by the U.S. Treasury through a statement, explaining that "due to the huge interest from countries around the world" the deadline to comply with the Law on Foreign Account Tax Compliance (FATCA), will be extend by six months, that is until July 1, 2014.
The Financial Committee of the Legislative Assembly in El Salvador has began to study a bill which will apply to "all financing operations related to the procurement of goods and services."
The item will be incorporated into the usury bill, that will be analyzed in Congress .
If the law is passed, interest charged by financial institutions for loans made through credit cards will be regulated by law.
Salvadoran President Mauricio Funes commented over the decree approved by 853 representatives which amends the Law on the Credit Card System.
A press release from the Presidency of the Republic of El Salvador reads:
The observations are essentially based on three considerations:
1. The Presidency shares the spirit of the legislators in their initiative to limit interest rates, in many cases charged by loan sharks, in the financial system that applies to credit card users and which has as its principal the intention to protect consumers.
Salvadoran private sector unions have expressed their opposition to state intervention in the market.
The new law, which sets a ceiling on interest rates for credit cards, is deemed to be a hindrance for the country's economy.
According to the Salvadoran Foundation for Economic and Social Development, Fusades, the reforms will result in reduced access to financing, they are therefore calling on President Mauricio Funes to veto the reforms.
The Salvadoran Banking Association is opposing the adoption of a reform which sets a ceiling on interest rates that can be charged for credit card use.
Private banking sector representatives noted that the changes were approved without having performed prior technical analysis and this threatens their legal certainty.
"They also criticized the fact that their views, raised previously, about the inconvenience of setting this limit on fees were not taken into account when the issue was first discussed in the Assembly in late 2009," reported Laprensagrafica.com.
The new law places limits on the maximum interest rates that issuers can charge.
With the aim of establishing an appropriate legal framework, representatives have approved a reduction in the maximum interest rate as part of the Law on Credit Cards.
The lack of knowledge about how to use this method of financing in the country is one of the reasons why the reform was proposed, as several representatives believe it is essential to regulate the activity and better educate consumers on the use credit card loans.