El Salvador: President plans to recognize Bitcoin as legal currency

El Salvador: President plans to recognize Bitcoin as legal currency

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If the bill submitted to parliament on accepting Bitcoin as an official means of payment by President of El Salvador Nayib Bukele is passed, this will be the first country in the world to officially circulate Bitcoin currency.

“I will soon submit to Congress a draft bill to make Bitcoin a legal means of payment in Elsavador,” President Nayib Bukele said, in a video broadcast at the Bitcoin Conference 2021 in Miami, USA.

El Savador is currently working with digital finance company Strike to build the infrastructure for this.

Jack Mallers, Founder of Strike assessed that El Salvador’s move will “fire the shot” around the world in terms of Bitcoin acceptance.

“Bitcoin is both the largest reserve asset ever created and a dominant network of currencies. Holding Bitcoin can help countries insulate developing economies from potential currency inflation shocks,” said Jack.

El Salvador is reportedly assembling a group of Bitcoin leaders to help build a new financial ecosystem with Bitcoin as its foundation.

Currently, this country uses USD as the official domestic currency, still mainly using cash. 70% of people do not have a bank account or credit card. Remittances account for more than 20% of El Salvador’s gross domestic product. Existing financial services may charge 10% or more for international deposits.

President Nayib Bukele, 39, has been in power since 2019. His party won a big victory in the March 2020 National Assembly elections, winning 56/84 seats. This means that Mr. Bukele’s Bitcoin bill is likely to pass.

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