In an interview with local media, Javier Argueta, the legal counsel to the Presidential Firm of El salvador, clarified the obligations of businesses the day before the state'south controversial Bitcoin Law recognizing Bitcoin every bit legal tender took effect.

The legal counsel to the president of Republic of el salvador has stated that businesses are mandated to accept Bitcoin (BTC) from customers — but they are able to cull whether or not they will receive BTC or U.s.a. dollars one time the transaction is settled.

According to a rough translation, Argueta emphasized that it is mandatory for businesses "to have the electronic wallet" to receive Bitcoin, however, "in the transaction [...] you lot have the will to receive Bitcoin or dollars, that is why it is voluntary."

"If I buy you 1,000 shirts that cost $200 and I'm going to pay you in Bitcoin, you take the wallet, but in the transaction, when you lot do it, you have the will to receive Bitcoin or dollars, that is why it is voluntary."

The official added that businesses that refuse to accept BTC will be operating in violation of local regulations. ElSalvador.com'south story states, "According to Argueta, all businesses are obliged to make the transaction in Bitcoin and despite the fact that neither the law nor the regulations clearly state it, if the business organisation does not accept it, it is exposed to referrals of infractions to the Consumer Protection Police."

The government'southward Chivo wallet allows users to process transfers in both BTC and U.S. dollars. The wallet is maintained in partnership with Mexican crypto commutation Bitso, which says it is working with California-based crypto-friendly bank Silvergate to facilitate transactions denominated in USD.

The app also allows merchants to automatically catechumen the Bitcoin they receive into dollars.

Related: McDonald'due south now accepts Bitcoin, simply only in El Salvador

The description comes equally local businesses are pushing back confronting linguistic communication contained in the Bitcoin Law that states merchants "must" accept Bitcoin every bit a means of payment, with representatives of the individual sector pushing for the legislation to be reworded.