El Salvador Plans to Make Bitcoin As Legal Tender
El Salvador Planning to Make Bitcoin As Legal Tender
El Salvador President Nayib Bukele is considering creating a law that recognizes Bitcoin the same way as the U.S. dollar, which the country currently uses as its official currency since 2001.
In a recorded message played at a Bitcoin conference in Miami, Bukele announced sending the proposed legislation to the country's congress that would make the leading cryptocurrency a legal tender.
Partnering with digital wallet Strike, Bukele is said to help the country become the first nation in the world to legally accept Bitcoin as legal money.
Adopting Bitcoin would create jobs and provide financial inclusion to thousands outside the formal economy, Bukele said as 70% of Salvadorans do not have a bank account and works in the informal economy.
Remittances from Salvadorans working overseas represent a major chunk of the economy, equivalent to roughly 22 percent of Gross Domestic Product.
In 2020, remittances to the country totaled $5.9 billion, according to an official report.
Bill Yet To be Approved in the Parliament
Speaking about the announcement, Strike's CEO and founder, Jack Mallers, said:
The El Salvador government is yet to give details of the bill, which will require approval from the parliament.
