Thread by @stephanlivera

Paraphrasing @nayibbukele from @nic__carter's Spaces on #Bitcoin legal tender:

El Salvador govt will have a govt-wallet for merchants (but it won't be the only choice), as Bitcoin is an open network

@nayibbukele @nic__carter Company balance sheets will be in USD, but taxes can be paid with Bitcoin.

Debts will be able to be paid with Bitcoin.

There will be a trust fund put in place by govt, which will assume the price-risk of the merchants, and deposit USD for them, even if the customer pays BTC.

Proposing to give immediate permanent residency to a person who invests 3 BTC into El Salvador. This will be priced specifically in BTC.

1 BTC = 1 BTC

Bukele has a meeting with the IMF on Thursday, where they will discuss this law

The aim being to lure innovators and talent to the country.

Nic asked whether this is de-dollarisation.

Bukele clarifies, This is not de-dollarisation.

Bukele: Bitcoin beach team demonstrated that this is not for rich people only. A community can benefit from Bitcoin. And now we're going to demonstrate it on a country wide scale.

Bukele: Why have a dystopic future if we can build the future we wanted as kids?

Bukele: Inequality coming from the central banking system. Bitcoin solves a lot of things, and its supported by a lot of innovators and talents, so we want to support that too

Bukele sees this as a gamechanger not just for El Salvador but for the whole world

Again clarifying that you can use whatever Bitcoin/LN wallet you want. You won't be forced to use govt wallet

The govt wallet and infra will be there to help people and improve financial inclusion, but it is not a requirement

El Salvador's Development bank will establish a trust fund, and buy the bitcoin of transactions by people who don't want to take BTC price risk, but want to receive USD.

This part doesn't involve the US Fed or Central Bank

No plans for Bitcoin mining at this point, but would consider doing something to promote mining

Bukele notes there is geothermal energy in ES, and the energy loss on transporting to the city.

Someone would want to set up a Bitcoin mining facility, but just a thought at this stage.

Nic: does high inflation motivate this decision?

Bukele: We were inspired by @Bitcoinbeach and work of @jackmallers

Bukele: The trust fund will hold at least $150M worth of Bitcoin, but not as a reserve.

for clarity: the trust fund amount will be accumulated over time, it doesn't hold this right now. e.g. customers paying Bitcoin with merchants who want to use the development bank's trust fund.

It'll be selling and buying and maintaining roughly that level of btc 'stock'

Bukele is dropping off the Spaces now as the official vote is on in 5 minutes

Legal Tender bill passes with supermajority

Karim (Nayib Bukele's brother): They are applauding now on the floor

Karim: headline here says "The congress approves Bitcoin law"

https://twitter.com/elsalvador/status/1402507585807433728

Karim: This will be the front page of El Salvador's largest paper tomorrow