Merchants must process BTC transactions or face action: El Salvador’s Bitcoin Law
The legal counsel to the President’s House of El Salvador, Javier Argueta, clarified queries as the country has become the first to adopt cryptocurrencies as legal tender.
Regarding the controversial Bitcoin Law, Argueta clarified that all businesses have to mandatorily accept Bitcoin (BTC) from their customers. Still, they have the option of choosing whether to receive BTC or USD as soon as the business transaction is confirmed.
Further clarifying business obligations, Argueta said if any local business owner refuses to accept BTC, they will be reported for violation of national regulations, one of which is referrals of infractions to the Consumer Protection Law.
The digital wallet of El Salvador dubbed ‘Chivo’ will allow consumers to process transfers both in USD and BTC. Chivo is maintained by the Mexican exchange, Bitso. Bitso has stated recently that it is working with a California-based bank, Silvergate, to facilitate transactions denominated in USD. The app also enables users to convert BTCs into dollars automatically on receiving payments.
Amid a sea of local business owners pushing back against the legislation’s wordings, the clarification comes as a response. The Bitcoin Law states that all traders and merchants “must” accept BTC for payment. The local private sector in El Salvador has been pushing to reword the legislation amid confusion over the new digital wallet adoption rules.
