El Salvador becomes the first country to adopt Bitcoin as fiat currency and makes history – Texasnewstoday.com

Many are skeptical of its usage (or other cryptocurrencies) as Bitcoin has recently made a confusing journey (mainly influenced by Elon Musk’s behavior). However, this could change as the Republic of El Salvador could become the first country in the world to open its arms and accept it as “legal tender.”

El Salvador’s President Nayib Bukele is considering introducing a law that recognizes the world’s most popular cryptocurrency as “legal tender” alongside the country’s official currency, the US dollar.

“Next week, we will submit a bill to Congress to make Bitcoin legal tender,” Bukele said. Bitcoin will make it easier for Salvadorans living abroad to send money, according to the president.

“In the short term, this will create jobs and bring financial inclusion to thousands of people outside the formal economic zone,” Bukele said at the Bitcoin 2021 conference in Miami on Saturday. He added that it could boost investment in the country.

Mobile payments app Strike will work with the government on this initiative to bring Bitcoin to the country.

Bukele said on Twitter that if 1% of Bitcoin with a market capitalization of $ 680 billion is invested in the country, GDP will increase by 25%. Cryptocurrency has 10 million potential new users. Bitcoin also benefits because it provides the fastest growing way to send $ 6 billion a year.

El Salvador has a cash economy, and 70% of the country’s population does not have a bank account (remittances make up about 20% of the country’s GDP, with more than 2 million Salvadors living abroad. However, if you send more than $ 4 billion a year in your country of origin and work in the informal sector, financial inclusion is not only a moral obligation, but also a way to grow your country’s economy. Transactions that provide access to credit, savings, investment and security.

“By using Bitcoin, the amount of money received by more than one million low-income households increases by billions of dollars each year,” he added. It also has the potential to improve the country’s low bank penetration rate.

Not surprisingly, investors and others involved in the cryptocurrency industry are delighted with the news, with some praising it as one of the most important milestones in Bitcoin’s history.

Strike founder Jack Marlers said the adoption of native digital currencies as fiat currencies will enable El Salvador to provide the world’s safest, most efficient and globally integrated open payment network. I did.

“What is transforming here is that Bitcoin is the largest reserve asset ever created and at the same time a good currency network. Holding Bitcoin is due to fiat inflation. It provides a way to protect developing countries from potential shocks, “he added.

El Salvador becomes the first country to adopt Bitcoin as fiat currency and makes history

Source link El Salvador becomes the first country to adopt Bitcoin as fiat currency and makes history

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