Littler Global Guide - El Salvador - Q2 2021

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Bitcoin Can Be Used to Pay Salaries

New Legislation Enacted

Author: Jaime Solís, Partner - BDS, Member of Littler Global

On June 8, the Legislative Assembly approved a law that recognizes “bitcoin,” one of many and perhaps the most well-known cryptocurrency, as legal tender in El Salvador. The purpose of the law is to allow bitcoin to be legally used in “any transaction.” Only those persons or entities who evidently do not possess the means to accept payment in bitcoin are exempted from having to accept it. The broadness of the law means even salaries could potentially be paid in bitcoin. However, President Nayib Bukele has expressed that no one will be forced to accept bitcoin.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.