El Salvador to become the first country to accept Bitcoin as a legal tender
El Salvador is taking Bitcoin adoption to a whole new level. During the Bitcoin 2021 Conference in Miami, President Nayib Bukele disclosed that he plans to make Bitcoin a legal form of money in El Salvador.
According to the video broadcast on Saturday (June 5), Bukele noted that he would send the bill to Congress this week. And if the bill eventually scales through, El Salvador will become the first country in the world to adopt Bitcoin as a legal tender.
During his speech, Bukele said that central banks were increasingly taking actions that could affect the economic stability of his country. Although he did not give enough details on how the plan will pan out, he said that in the short term, it would create more jobs and provide financial inclusion to thousands of people in El Salvador.
Welcome to the future 🇸🇻 #Bitcoin pic.twitter.com/j30vcZVXvJ
— Nayib Bukele 🇸🇻 (@nayibbukele) June 5, 2021
That being said, the country’s central bank will adopt Bitcoin as part of its reserves, and citizens will be allowed to freely transact with Bitcoin.
Bukele goes on to reveal that the country has already partnered with digital wallet company Strike, which will be tasked with building a modern financial infrastructure with blockchain. Meanwhile, Jack Mallers said that the move will be a “shot heard ‘round the world for bitcoin.”
In a series of follow-up tweets this week, President Bukele provided further insight into his decision to adopt the flagship cryptocurrency as a legal tender.
#Bitcoin has a market cap of $680 billion dollars.
— Nayib Bukele 🇸🇻 (@nayibbukele) June 6, 2021
If 1% of it is invested in El Salvador, that would increase our GDP by 25%.
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.
He explained that:
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…. Furthermore, 70% of El Salvador’s population doesn’t have a bank account and work in the informal economy. Financial inclusion is not only a moral imperative but also a way to grow the country’s economy, providing access to credit, savings, investment, and secure transactions… We hope that this decision will be just the beginning in providing a space where some of the leading innovators can reimagine the future of finance, potentially helping billions around the world.
He also highlighted four reasons why crypto investors and businesses might want to consider relocating to El Salvador.
1. Great weather, world class surfing beaches, beach front properties for sale.
— Nayib Bukele 🇸🇻 (@nayibbukele) June 6, 2021
2. One of the few countries in the world with no property tax.
3. No capital gains tax for #Bitcoin, since it will be a legal currency.
4. Immediate permanent residence for crypto entrepreneurs. https://t.co/j3eugJQCMd
Earlier today, he dropped another update on the status of the said bill.
The #Bitcoin Bill proposal that we’ll send to Congress is almost ready.
— Nayib Bukele 🇸🇻 (@nayibbukele) June 8, 2021
Simple - Short - Sweet
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