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El Salvador President Bukele wants Bitcoin as a valid tender | Business and Financial Issues

This move, if approved, would make El Salvador the first country in the world to accept cryptocurrency as a legitimate currency.

El Salvador could be the first country to make Bitcoin valid after President Nayib Bukele announced that he would soon introduce a law that could change the economy.

The move could make Central America the first in the world to recognize cryptocurrency currency as a legal tender and “allow for the integration of tens of thousands of people outside the legal economy,” Bukele said on Saturday.

“Next week, I will send to Congress the money that makes Bitcoin a legal tender,” he said in a video for a Bitcoin 2021 conference in Miami.

He said the law seeks to create jobs in a country where “70% of people do not have a bank account and do financial work”.

The government does not provide details of the bill, which will need to be approved by a parliamentary committee chaired by the president’s aides.

Receivables from Salvadorans working overseas represent a large part of the economy – equivalent to about 22% of gross domestic product (GDP).

Last year, remittances amounted to $ 5.9bn, according to government reports.

Strike, a mobile payment program launched in El Salvador in March, said he was grateful for the adoption of the law and is working with the country to make the Bitcoin industry a success.

“This is the news that has been heard around the world for Bitcoin,” Strike founder and CEO Jack Mallers, founder of Bukele’s video, was told at a Miami conference.

“Receiving digital currency as a legitimate currency provides an opportunity for El Salvador to be the safest, most secure and integrated environment in the world,” Mallers said.

The cryptocurrency market grew to $ 2.5 trillion by mid-May 2020, according to the CoinMarketCap page, driven by interest from investors from Wall Street to Silicon Valley.

But the volatility of Bitcoin – valued at $ 36,127 – and its vague rules raised questions about whether it could replace fiat currencies in day-to-day operations.

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