The President of El Slavador, Nayib Bukele, recenty stated that he will send a bill to the Congress next week to make bitcoin legal tender in the Central American nation. He is of the opinion that through bitcoin, Salvadorians living abroad will be able to send remittances home.
Bukele, in a short video at the Bitcoin 2021conference in Miami stated that this action will help generate jobs and provide financial inclusion to thousands outside the formal economy. Strike, a mobile payments app launched recently in El Salvador stated that it supports the legislation and was working with the country to ensure that bitcoin technology turns into a huge success.
Strike founder and CEO Jack Mallers stated that this is massive step in the world of bitcoin. He added that if El Salvador adopts a natively digital currency as legal tender, then the country can obtain the most secure, efficient, and globally integrated open payments network in the world.
In a Twitter post, Bukele stated that promoting financial inclusion is a moral imperative. It is also a path to grow El Salvador’s economy because it will provide access to credit, savings, investment, and secure transactions.
While emphasizing on the issue of remittances, Bukele said that currently the country has lost a big chunk of those 6 billion dollars to intermediaries. If the country uses bitcoin, the amount that more than a million low income families have received, will increase in the equivalent of billions of dollars every year.
Bukele added that 70% of El Salvador’s population does not have a bank account and works in the informal economy. The addition of bitcoin will help in improving lives and the future of millions.