The First in the World El Salvador Intends to Legislate Bitcoin as Legal
El Salvador is seeking legislation to become the first sovereign country in the world to use Bitcoin as legal tender.
El Salvador’s President Nayib Bukele announced over the weekend that El Salvador will work with digital wallet company Strike to use Bitcoin technology to build the country’s modern financial infrastructure.
In a video speech at the “Bitcoin 2021” conference, he said: “Next week, I will submit a bill to Congress to make Bitcoin a legal tender.”
“Lightning Network”payment platform Strike founder Jack Mallers said that this will become Bitcoin “the sound of gunshots around the world.”
Miles said that this move will help unlock the power and potential of Bitcoin to benefit individuals, businesses and public sector services.
El Salvador is a cash-based economy, and about 70% of people do not have a bank account or credit card. The money remitted by migrants to their home country accounts for more than 20% of El Salvador’s GDP. Existing service agencies charge 10% or more for these international transfers, sometimes it takes a few days to arrive, and sometimes you need to withdraw the money in person.
Although the details of how Bitcoin works have not yet been announced, El Salvador has formed a Bitcoin leadership team to help build a new financial ecosystem based on Bitcoin.