Castro has discussed the matter of companies paying their workers in Bitcoin (BTC) with officials from the Ministry of Finance and the Ministry of Economy. His remarks come a week after the country’s Legislative Assembly approved the use of the cryptocurrency as legal tender.
El Salvador’s 2001 Law of Monetary Integration, which provided the legislative framework to eventually replace the Salvadoran colón with the U.S. dollar, states that salaries and fees may only be paid in colónes or dollars. However, the former is rarely used in the Central American nation now.
It’s unclear if the approval of Bitcoin as legal tender in the country will expand upon existing law or replace it. President Nayib Bukele’s draft of the law shows “tax contributions can be paid in Bitcoin” and “for accounting purposes, the USD will be used as the reference currency.”
Bukele has taken to social media to promote cryptocurrencies and mining in El Salvador, after first announcing he would be introducing the pro-Bitcoin legislation at the Bitcoin 2021 conference in Miami earlier this month. Last week, the president called on the state-run geothermal power company to make certain facilities available to Bitcoin miners.
Source: El Salvador Considering Paying Employee Salaries in Bitcoin – Fintechs.fi
El Salvador Considering Paying Employee Salaries in Bitcoin
According to Rolando Castro, the Minister of Labor and Social Welfare in El Salvador, the government is discussing whether companies in the country should pay their employees in Bitcoin.
It can also be used to settle import and export payments ,especially since bulk of the imports,are from the USA,and BTC is freely used in USA.
Transfers of funds from 1 BTC to the other,is in less than 1 second,and this is a legit transfer.Even if the transfer is to a money changer in Salvador,he can sell the BTC,and pay the recipient in cash with a cash receipt.
In 1 second,the price will not vary much,and the money changer has to have standing nstructions,to sell all BTC inward remittances - in 3 second tranches. BTC or some other currency,can have an option to block the price for 3 seconds, and that quantity of BTC,will NOT BE traded for 3 seconds,and disclosed on the Crypto Exhange.Or in the alternative,some large BTC trader can offer a Put option for 3 seconds - which will be the cost for the remittance.
The savings in time and cost,will far exceed any disadvantage,and Salvadoreans will get more cash in hand,to spend and save.They could cash out in USD,or any other currency,at premium rates.
Salvadorean Money Changers and ADs,will become OBSOLETE soon. Salvadorean bankers,have to make profits from efficiencies, and NOT by gouging money from locals.
With BTC as the EXCHANGE,the nation should invite PRC and others,to tap into Peak load power plants like Hydel and Geothermal,and invite miners into Salvador,into SEZs with nil Taxes for 10 years,and guaranteed power supply. The Govtt will earn from power tarriffs,power wheeling,tax on power profits and lease charges,on the Miners
Salvador has 23 ACTIVE VOLCANOS AND SITS ON THE RING OF FIRE.THE POWER CANNOT BE USED IN SALVADOR,TO MAKE OR EXPORT ANYTHING.THE ONLY THING THAT CAN BE EXPORTED IS BTC,AND MADE BY FOREIGNERS IN SALVADOR !
IT IS A WIN-WIN !
This can be a new economic model for the nation.
ALSO SALVADOR HAS MANY PORTS WITH GOOD DRAFTS WHICH ARE VIABLE FOR RPP - ON RFO OR HSD - WHICH IS A SHIP WITH A POWER GENERATOR, WHICH WILL DROP ANCHOR AT THE PORT,AND GENERATE PEAK LOAD POWER !dindooohindoo
WITH LOW COST POWER SERVER FARMS CAN ALSO BE HOSTED IN SALVADOR!