Shortly before the controversial law it recognizes came into effect BTC as legal tender, Javier Argueta, legal advisor to the Presidential Chamber of Salvador, clarified the obligations of companies during a ‘interview with local media.
Argueta stated that the companies they are obligated to accept Bitcoin from customers, but who have the option of choose whether to receive BTC or US dollars once the transaction is completed.
Argueta stressed that it is mandatory for companies “own an electronic wallet“to receive Bitcoin, however traders can decide whether to keep the payment in BTC or automatically convert it to USD:
“If I buy 1,000 $ 200 T-shirts and send Bitcoins to your wallet, you have the option of receiving Bitcoins or dollars in the transaction, that’s why it’s optional.”
The official added that companies that refuse to accept BTC will be operating in violation of the regulations:
“According to Javier Argueta, Capres legal advisor, all entrepreneurs who do not use the Chivo wallet and refuse to transact with #Bitcoin will face regulations such as the Consumer Protection Act. Referral procedures will follow.”
#ElSalvador | According to Javier Argueta, Capres’s legal advisor, all businessmen who do not use the Chivo wallet and refuse to make the transaction with #Bitcoin they face legislation such as the Consumer Protection Law; referrals will be made.
– elsalvador.com (@elsalvadorcom) September 6, 2021
Chivo, the government wallet, allows users to process transfers in both BTC and US dollars. The wallet is managed in collaboration with theBitso Mexican cryptocurrency exchange, which claims to partner with California-based bank Silvergate, which facilitates USD-denominated transactions.
The app also allows merchants to automatically convert received Bitcoins into dollars.
Related: McDonald’s now accepts Bitcoin … but only in El Salvador
The clarification follows local companies’ disapproval of the language contained in the Bitcoin law, according to which “must“accepting Bitcoin as a means of payment. Some private sector representatives are pushing for a reformulation of the legislation.
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