Samson Mo, CEO of Jan3, issued analysis One of the recent amendments to the Bitcoin Law in El Salvador, to shed the new light on whether bitcoin remains a legal tender in the country. While the El Salvaduri government has repeatedly emphasized that “everything is great”, MOW urges caution, indicating that the reviews maintain the status of the legal giving of Bitcoin and reduce their classification as a “currency”. The situation describes as “bitcoin alike, not legal”, which emphasizes the contradictory position of the law.
Amid confusion: “Bitcoin alike and not a legal tender”
MWw explains that the government's original Bitcoin law still exists, but the official signals of BTC have been removed as a “currency”, and Bitcoin's use is now voluntary. As he put it, “he is defined as a legal tender but lacks something that actually makes it a legal tender.” It provides an example of Article 1, which no longer employs the word “currency” and makes BTC optional for companies. MoW notes that this can reduce the incentive for major companies, such as Starbucks or McDonald's, to maintain bitcoin payment systems, because the legal status was previously an incentive to comply.
It also draws attention to Article 3, which previously allowed any price expressed in BTC. The amended text now states that any “BTC” price may be transferred, rather than citing BTC alone. MoW notes that “most people convert FIAT prices to BTC to pay,” however it worries that the change may inhibit the explicit bitcoin pricing, because it hints that official amounts may need to be mentioned in FIAT before any transfer.
In Article 4, the government removed the option to pay taxes in BTC. MOW believes that this means that the state can no longer accept Bitcoin for applications such as integrating the company, passport programs, or citizenship by investing, or even tourist fees amounting to $ 12 at the airport. Although the modifications are not explicitly preventing BTC transactions in these areas, the removal of the relevant text is not effectively excluded from bitcoin from using these official payments.
Article 5 continues to exempt BTC from capital gains. This is explained as an additional evidence that El Salvador is now compatible with Bitcoin with the idea of origin more than money or currency, in line with the prevailing views of the legal treatment of Bitcoin all over the world.
While the law allows citizens to use bitcoin, Article 7 confirms that the Salvaduri government cannot touch BTC, unlike keeping it in reserves. Likewise, it is no longer required to facilitate bitcoin transactions, a transformation that paves the way for El Salvador to decline or sell Chivo, the state's wallet platform. MOW notes that “Chivo was an important BTC bridge and gave Bitcoin to millions of people.” However, it has been criticized often due to errors and optimal performance.
The International Monetary Fund Agreement and the issue of “confined” use
MOW also raises questions about El Salvador with the International Monetary Fund. The official language of the International Monetary Fund's contract indicates that Bitcoin will “be” limited “, but it does not specify the term completely. According to MWW, the El Salvaduri government continued to collect BTC in reserves, although it is still not certain whether this policy will continue or if it was limited through future interpretations of the International Monetary Fund deal. And he confirms that many bitcoin workers are looking for a “more fundamental answer” than a mysterious “We are still buying.”
It also surrounds the uncertainty of the future of the merchant's adoption. Companies such as Super Selectos, the largest supermarket in El Salvador, depend on the Chivo infrastructure for BTC. MOW worries that once Chivo is not binding, companies may face higher public expenses if they choose to integrate another portfolio system. He notes that “there is not enough BTC transactions to justify the cost of maintaining two payment systems,” indicating that the adoption of companies from BTC may decrease.
It also sheds light on the political dimension, noting that Super Sectos is owned The BTC use is expanded if it is not generated enough to justify the additional expenses.
The appointment of the new volunteer legal giving is what the MWW scenario calls “half full and half -glass”. On the one hand, Al Salvador still has the Bitcoin Law on books. The amendments maintain any taxes on the capital gains on BTC, and the government is free to maintain reserves. On the other hand, the country is no longer unique in its approach. MOW notes that other judicial states – such as Prosperra, which still recognize BTC as a legal tender; Bhutan and the United States, both carry BTC as a backup asset; And the various regions that offer any capital gains on BTC – El Salvador may now compete in providing attractive conditions for Bitcoin.
MoW admits that many encryption enthusiasts moved to El Salvador or the construction of companies there specifically because the law originally submitted a clear state from top to bottom for bitcoin. The classification, along with mysterious obligations under the International Monetary Fund agreement, leaves some with open questions about the country's time or strength of the country's policy. However, according to MOW, none of this means the end of the El Salvador experience. “There is a greater dependence of Bitcoin all over the world than ever and ES helped play a role in it,” he says, adding that the President of the Park of “must do what he thinks is better for the country first and foremost.”
MOW also reveals the motivation behind his private company, saying: “For this reason, it started in January 3, and for this reason we focused on obtaining more bitcoin adoption in the national state around the world. Some. “It is believed that it is only through the use of the real world, either at the level of the base or approved by governments, BTC will gain wide and permanent acceptance.
These developments in El Salvador distinguish the development instead of a direct decline in Bitcoin Law. The amendments are trying to reconcile the country's initial commitment to BTC with practical concerns that have emerged, including the need to work constructively with international lenders. The result is a scenario in which the law remains on books. Bitcoin remains a legal tender, but the mechanism in which the government and companies are distributed with.
Currently, El Salvadori authorities show content to recognize BTC as the original and maintain the current reserves, with a return from the obligations to accept BTC for official payments and taxes. Many of those who notice or participate in global growth in BTC will monitor how these changes are operating, especially if companies voluntarily decide to continue supporting BTC or starting to abandon them. However, as MoW notes, “political parties change in power. Laws can be easily changed. What matters is the real Bitcoin dependence – below or at the base level, and the goal is that real people understand and use bitcoin.”
At the time of the press, BTC was traded at $ 96,830.
Distinctive image created with Dall.e, Chart from TradingView.com