The El Salvador Legislative Assembly rejected the proposal to ban cryptocurrency wages

The arena party boss, René Portillo Cuadra called on the MPs of the ruling party to stipulate in the Bitcoin law that the salaries and social benefits of Salvadorans can only be paid in US dollars. The proposal that the use of cryptocurrencies to pay salaries in El Salvador be expressly prohibited.

Nevertheless, In the plenary session this Tuesday afternoon in the country, it was rejected by a majority of MPs. The agenda change had only 16 votes: 3 from the FMLN, 1 from Nuestro Tiempo, 1 from Vamos and 11 from Arena.

Portillo, requested approval of one â ???? Special decree for remuneration in all employment relationships with a public or private institutionâ ???? that says: â ????All compensation for work in a private or public employment relationship must be in US dollars. It is forbidden to make salary payments or any remuneration in cryptocurrencies.

The El Salvador Legislative Assembly rejected the proposal to ban cryptocurrency wages
The El Salvador Legislative Assembly rejected the proposal to ban cryptocurrency wages

The decree would have a special character and take precedence over any other provision that contradicts it, including the articles contained in the Bitcoin Law. However, this proposal was rejected.

In fact, Athena, a company that came to El Salvador after the Bitcoin law was passed, announced that it had drawn up an application allowing salaries to be paid in Bitcoin.

“With Vanguard 1, employers can now give their employees the freedom to choose how they want to be paid. Employees have the option of receiving a percentage or a dollar amount of their wages in Bitcoin. “ published the company on its website.

“The participation of the employees in this payment system is completely optional and if they choose, they will receive their payment in Bitcoin via their Chivo wallet”, add the information published on the portal. As reported, the application will be available to businesses large and small.

The employee would have the option to choose what percentage of their salary, or a certain amount of money in dollars, would be converted into BTC with every payment they receive for their work. TO”The participation of the employees in this payment system is completely optional », repeats the company.

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Currently the The Labor Code states that wages in the â ????legal tenderto???? of the country. Let’s remember that Bitcoin has also been legal tender since September 7th.

But both Bukele and Economy Minister Alejandro Zelaya have said repeated that the Bitcoin Act does not provide for the payment of obligations to employees who use the cryptocurrency.

However, President Bukele’s statement is said to be â ????not correctto???? precisely because of what the Labor Code stipulates in its Article 120, which stipulates: “The salary must be paid in legal tender “. And the country’s legal tender is the colón – even when not in use – the dollar, and the bitcoin, thanks to the bitcoin law.

The President of El Salvador defended that its bet on Bitcoin had become just another legal tender and that the law that guaranteed the standard guaranteed the free acceptance of Bitcoin for the population.

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