El Salvador Plans To Make Crypto-Currency Legal

El Salvador Plans To Make Crypto-Currency Legal Tender!

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El Salvador’s president says he will make the Bitcoin crypto-currency legal tender in the country.

If his plan is backed by congress, the Central American country would be the first in the world to formally adopt digital currency.

It would be used alongside the US dollar, El Salvador’s official currency.

President Nayib Bukele says Bitcoin will make it easier for Salvadorans living abroad to send payments home.

“In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy,” Mr. Bukele told a Bitcoin conference in Florida, adding that it could also boost investment in the country.

Speaking about the announcement, Strike’s CEO and founder, Jack Mallers, said: “Adopting a natively digital currency as legal tender provides El Salvador the most secure, efficient and globally integrated open payments network in the world,” according to Reuters.

Mallers continued: “What’s transformative here is that bitcoin is both the greatest reserve asset ever created and a superior monetary network. Holding bitcoin provides a way to protect developing economies from potential shocks of fiat currency inflation.”

Bukele continued the discussion in a Twitter thread, where he said that bitcoin has a market cap of $680 billion dollars. “If 1% of it is invested in El Salvador, that would increase our GDP by 25%,” he said. “On the other side, bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances.”Remittances are a key issue for a country where 70% of the population does not have a bank account, according to Bukele. “By using bitcoin, the amount received by more than a million low-income families will increase in the equivalent of billions of dollars every year,” he said.

Western countries have generally been more enthusiastic than others about crypto but this is starting to change.

China, for example, has recently softened its stance towards bitcoin, as Insider Isabelle Lee reported. Officials in the country are now calling the digital asset an “investment alternative” – a comment that Beijing insiders described as “progressive”

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