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El Salvador Government Discussing Paying Salaries in Bitcoin

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Tue, 06/15/2021 - 16:04
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Alex Dovbnya
Three El Salvadorian government ministries are currently discussing whether companies should pay salaries in Bitcoin
El Salvador Government Discussing Paying Salaries in Bitcoin
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El Salvador's Minister of Labor and Social Welfare Rolando Castro says that the government is currently discussing whether companies should pay salaries in Bitcoin, according to Telenoticias21

The details about the new initiative remain scant, and it's unclear how employers will be able to mitigate the cryptocurrency's volatility.     

The Ministry of Economy and the Ministry of Finance are jointly working on the issue together with the Ministry of Labor and Social Welfare.

El Salvador’s 2001 Monetary Integration Law includes Article 7, which states that all salaries are payable in dollars. The country replaced the Salvadoran colón with the greenback during Francisco Flores's presidency.  

Related
Central America's Biggest Multilateral Development Bank to Help El Salvador with Bitcoin Implementation

Last week, Congress passed President Nayib Bukele's groundbreaking Bitcoin bill with a supermajority vote, making El Salvador the first country to adopt the cryptocurrency as legal tender.

Merchants will be able to price goods and services in Bitcoin, but the U.S. dollar will still be used as the reference currency for accounting purposes. 

El Salvadorians will also have an option to pay tax contributions in the flagship crypto. 

On top of that, the tropical nation plans to utilize geothermal energy generated by its volcanoes for mining.      

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.