At the Bitcoin Conference held in Miami last Saturday, the President of El Salvador announced: He wants Bitcoin as legal currency. He indicated that this week he will send a proposal to Congress. If this goes ahead, El Salvador will be the first country in the world to accept Bitcoin as legal tender.
Neb Bukele, President of El Salvador. ad The initiative is via a recorded video played at the Bitcoin Conference in Miami. DrI see this as having advantages in the short, medium and long term. According to the statement:
“In the short term, this will create jobs and help provide financial inclusion for thousands outside the formal economy and in the medium and long term, we hope this small decision will help us move humanity at least a little bit in the right direction.”
Neb Bokel and his political party They have an absolute majority in El Salvador, with an approval rate of over 90% at the moment. This makes it difficult for their legislative proposals not to be approved by Congress. If the proposal is sent to Congress this next week, then perhaps in a few months Bitcoin will be the default currency in the Central American country.
– Nayib Bukele 🇸🇻 (nayibbukele) June 5, 2021
(special) dependence on the United States
at the moment The US dollar is the legal currency in El Salvador. Given that a quarter of the country’s citizens live or work in the United States, a huge amount of money comes into the country from the United States. This makes the country directly dependent on the United States.
Last year, even with the pandemic, more than $6 billion was sent from the United States to El Salvador. In messages on Twitter The president noted that with Bitcoin it could be “the fastest growing way to get $6 billion in remittances a year.”
The head of state explains it too A lot of money that comes from the US is often lost through intermediaries. With Bitcoin, the amount received is preserved and “will improve the lives and future of millions.” It also adds that it is “a means of making the country’s economy grow, providing access to credit, savings, investment and secure transactions.”
Finally, the boss too I have opened Entrepreneurs’ doors Turning El Salvador into a kind of crypto-currency paradise. It says the state has no property taxes, no bitcoin earnings tax, and instant permanent residence for crypto entrepreneurs.