El Salvador’s President Nayib Bukele has revealed his plans to submit a bill to Congress for the adoption of Bitcoin [BTC] as legal tender alongside the US dollar.
In a video broadcast at the Bitcoin 2021 conference in Miami, the 39-year old President said that this move will help create more jobs and offer financial inclusion to thousands outside the formal economy in the short term.
Launching Bitcoin in El Salvador
Bitcoin a market cap of $680 billion dollars, According to Bukele, even if 1% is invested in El Salvador, this could potentially increase the country’s GDP by 25%. This will also open doors to 10 million potential new users of the cryptocurrency which could also pave the way for the “fastest growing way to transfer $6 billion a year in remittances.”
In a series of tweets, El Salvador’s President also stated,
“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.”
Moreover, Bukele acknowledged that 70% of El Salvador’s population belongs to the bankless category. Hence, Bitcoin will bring about the much-needed financial inclusion, which according to the president, is not only a “moral imperative” but also a way to grow the country’s economy, by providing access to credit, savings, investment, and secure transactions.
Since taking office on the 1st of June 2019, Bukele has already made a set of notable decisions. He became the youngest president in Latin America at the age of 37 after breaking the 3-decade long streak of two-party control over the presidency. This latest move is crucial especially at a time when Bitcoin has been embraced by institutional powers that had previously dismissed the power of the cryptocurrency.
The industry has faced immense regulatory clampdowns even as the popularity grew multi-fold and prices saw a blistering rally. El Salvador President’s plans could very well strengthen the Bitcoin ecosystem and amplify its use cases on an open network that benefits individuals, businesses, and public sector services.