After the historic decision of making Bitcoin legal tender, El Salvador is tightening up merchants to process BTC transactions. Moreover, the government is aiming to infuse cryptocurrencies in day-to-day transactions.
Javier Argueta, the legal counsel to the president of El Salvador, stated in an interview with the local media:
“Businesses will have to accept Bitcoin from customers However, they can decide whether or not they will receive BTC or US dollars after settling transaction.”
He further added (after translating):
“If I buy you 1,000 shirts that cost $200 and I’m going to pay you in Bitcoin, you have the wallet, but in the transaction, when you do it, you have the will to receive Bitcoin or dollars, that is why it is voluntary.”
The official stated that businesses refusing to accept BTC would violate the local regulation. Moreover, according to a report by ElSalvador.com:
“According to Argueta, all businesses are obliged to make the transaction in Bitcoin and despite the fact that neither the law nor the regulations clearly state it, if the business does not accept it, it is exposed to referrals of infractions to the Consumer Protection Law.”
To transact in Bitcoin, the El Salvadorean government has devised a wallet known as Chivo. Through this wallet, users can process transfers in both BTC and US dollars. The wallet’s functioning is through a partnership with the Mexican crypto exchange Bitso. Moreover, Bitso stated that it is working with crypto-friendly bank Silvergate. Through this, they are facilitating transactions in USD.
Also, the app allows merchants to convert Bitcoin into US dollars automatically.