The law regulating the introduction and use of bitcoin as legal tender does not go into deep technical detail to describe how the initiative will function. It merely recognizes bitcoin as "unrestricted and unlimited legal tender in any transaction," including tax payments. 

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- Brevity
- Role of US Dollar
- State-promoted alternatives
- Delegation of power

Key features of El Salvador's Bitcoin adoption

Gorjon, Sergio. (2021). The Role of Cryptoassets as Legal Tender: The Example of El Salvador. Banco de España. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3944765

The Role of Cryptoassets as Legal Tender: The Example of El Salvador

The law requires that the State promote alternatives to facilitate the process of making transactions using bitcoin and instantly converting it into dollars, at the discretion of users.

State-promoted alternatives

Brevity in El Salvador's Bitcoin adoption

The law grants the government the power to design and implement the institutional architecture required to ensure the proper application of bitcoin adoption. It leaves more practical matters to the Central Bank and Financial System Superintendency. 

Delegation of power in El Salvador's Bitcoin adoption

The measure does not replace the U.S. Dollar as El Salvador's official currency with bitcoin. It specifically states that the U.S. Dollar will still be used as a reference currency for accounting, and leaves the exchange rate between the two currencies to be determined by market forces.

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