The president of El Salvador wants Bitcoin to be recognized as legal money.
President Nayib Bukele of El Salvador has stated his desire to introduce a bill to the country’s congress that would make Bitcoin legal cash in the Central American country.
It is an idea, according to the 39-year-old president, that might assist El Salvador in moving forward.
“Next week, I will send to Congress a law that will make Bitcoin legal tender in El Salvador,” he stated in a recorded message at a Bitcoin convention in Miami on Saturday.
“In the near term, this will create jobs and enable thousands of people outside the formal economy gain access to financial services, and in the medium and long term, we hope that this minor action will help us push mankind in the right direction.”
El Salvador’s national currency is the US dollar. Despite the pandemic, almost a fifth of El Salvador’s people live in the United States, and they sent home more than 6 billion dollars (£4.26 billion) in remittances last year.
Mr Bukele’s New Ideas party has a supermajority in the new congress, which took office on May 1, ensuring that any legislation proposed by the president has a great chance of passing.
The plan’s specifics have not been revealed. However, Mr Bukele then stated on Twitter that Bitcoin may be “the fastest growing mechanism to move 6 billion dollars in remittances per year.”
He claims that a large portion of the money transactions is currently lost to intermediaries, and that Bitcoin may benefit over a million low-income families.
He also stated that 70% of El Salvador’s population lacks a bank account and works in the informal economy, and that Bitcoin might help with financial inclusion.