Salvadoran entrepreneurs must honor transactions in BTC or face legal consequences?
Salvadoran entrepreneurs must honor transactions in BTC or face legal consequences? Salvadoran entrepreneurs must honor transactions in BTC or face legal consequences?

A Salvadoran government official has dispelled doubts. Según Javier Argueta said that while companies must accept BTC transactions, they can choose whether to receive BTC or USD after the transaction is settled.

Not that we want to conflate one with the other, but in the dozen or so hours after BTC was introduced as a legal means of payment, the price of cryptocurrency has corrected quite a bit. This is certainly not to the taste of some Salvadorans, as – as we have mentioned more than once – the introduction of BTC was not to the taste of many of them. People were afraid that the money they exchanged for a digital asset would start losing value overnight.

There is something else…

Salvadoran entrepreneurs must honor payments in BTC. But…

In recent days, and just moments before the new law went into effect, Salvadoran entrepreneurs heated up a discussion about an obligation to accept bitcoin transactions.

The legal advisor to El Salvador’s president has stated that businesses in the country are obligated to accept bitcoin from customers, although they can choose to receive BTC or US dollars after the transaction is settled.

According to a rough translation, Agueta stressed that in order to receive BTC, companies must “have an electronic wallet.” However, “in the transaction […] you can choose whether to receive bitcoins or dollars, so it’s voluntary.”

“If I buy you 1,000 shirts costing $200 and pay you in bitcoins, you have a wallet, but in the transaction, when you do it, you have the will to receive bitcoin or dollars, that’s why it’s voluntary.”

The official added that businesses that refuse to honor BTC will be operating in violation of local regulations. ElSalvador.com writes “According to Argueta, all businesses are required to transact in bitcoin, and despite the fact that neither the law nor regulations explicitly state this, if a business does not accept it, it faces the consequences of violating the Consumer Protection Act.”