El Salvador Plans to Give Bitcoin Legal Tender Status

Nayib Bukele, President of El Salvador, said he intends to make Bitcoin (BTC) legal tender in his country. The President’s announcement garnered support from players such as Strike and Changpeng Zhao.

June 7, 2021 | AtoZ Markets – Speaking at the BTC conference in Miami, the 39-year-old said the cryptocurrency adoption would bring both short-term and long-term benefits. These include increasing the number of jobs and boosting investment in El Salvador. He covered these benefits in detail in a series of tweets he released on June 6.

#Bitcoin has a market cap of $ 680 billion,” one of those tweets began. He continued:

If 1% of it is invested in El Salvador, it would increase our GDP by 25%. On the other hand, #Bitcoin will have 10 million potential new users and the fastest growing way to transfer $ 6 billion a year in money transfers.

President Bukele also discussed the benefits of adopting BTC for Salvadoran residents in more detail.

By using #Bitcoin, the amount received by over a million low-income families will increase to the equivalent of billions of dollars each year. It will improve the lives and future of millions of people.

Hopefully, this decision will only be the start of providing a space where some of the world’s leading innovators can re-imagine the future of finance, potentially helping billions around the world.

The president also set up a new profile picture on his official Twitter account. The image shows him now in formal attire, but with laser eyes.

Bukele gains support

The President’s announcement was met with great praise and excitement. People like Binance CEO Changpeng Zhao have already expressed their support.

In addition, according to Reuters, the Strike mobile payment app said it welcomed the new rules. They also said they will work closely with El Salvador to successfully exploit Bitcoin technology. The strike took off in El Salvador in March.

President Bukele will submit the bill to Congress next week.

The world is moving towards crypto adoption

If congress endorses President Bukele’s plan, El Salvador will be the first country in the world to adopt cryptocurrency as legal tender. Reports indicate that if congress approves the decision, El Salvador will use BTC alongside the US dollar, its official currency.

President Bukele seems committed to adopting the no less volatile BTC, which has seen significant fluctuations this year. Other countries, however, are researching central bank digital currencies (CBDCs).

China, for example, is making progress on digital yuan. The country’s government has not yet announced an official schedule for introducing CBDC. Nevertheless, its pilot now includes several retail platforms as well as private banks.

In late May, a former official of the People’s Bank of China voted in favor of the digital yuan. This was in response to the insinuations of Federal Reserve Chairman Jerome Powell that China would use CBDC to monitor its citizens’ payments. Yao Qian said that was never the motive behind the digital yuan. He argued that CBDC is designed as a countermeasure against the increasingly popular “private payment platforms”.

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