On August 31, 2021, Decree No. 137 was published in the Official Gazette of El Salvador, approving the Law for the creation of the Bitcoin Trust, which provides as follows:
1. BITCOIN trust
The bitcoin trust is constituted in favor of the State and Government of El Salvador through the users of the state digital Wallet for an indefinite period, aiming to financially support the alternatives the State provides without prejudice to private initiatives that allow the user to carry out the automatic and instant convertibility of Bitcoin currency to U.S. dollar.
2. Constitution of the trust
The incorporation of the trust shall be formalized by public deed to be registered in the Registration of Commerce. The registration of the deed of incorporation, its amendments, or its liquidation shall not cause any tariff, fee, or registration fee.
3. Trust property
The trust shall be constituted initially with the resources transferred by the Ministry of Finance up to the value of US$ 150,000,000.00, being the patrimony strengthened through the incorporation of other resources generated by the execution of the operations carried out during its existence.
In addition, it will be made up of the following assets:
- Funds raised by the issuance of securities.
- Interest on investments.
- Income or loss derived from the operations of the Trust.
- Securities acquired at any time during the existence of the trust.
- Any other fund, property or asset of any nature becoming part of the trust’s patrimony.
4. Obligations of the settlor
The settlor may constitute a trust under the Commercial Code, may participate in the Board of Directors of the Trust, keep the funds in a deposit account in dollars at the Central Bank, and manage any information the fiduciary may require.
BANDESAL (Banco de Desarrollo de El Salvador – Development Bank of El Salvador), as fiduciary and administrator of the trust, shall be responsible for the funds transferred to it by the Ministry of Finance and for those within the trust assets.
6. Tax processing
The trust is declared exempt from the payment of income tax, tax on the transfer of personal property, and the rendering of services. However, it must comply with the respective formal obligations.
The trust must have an external financial and management auditing firm duly registered with the Superintendency and in the Registration of Auditors kept for that purpose by the Court of Accounts of the Republic.
7. Validity of the rule
The rule is effective August 31, 2021.
Source: Diario Oficial 02/09/21