El Salvador wants to introduce Bitcoin as legal tender
El Salvador wants to introduce Bitcoin as legal tender

El Salvador is striving to be the first sovereign country in the world to enact laws making bitcoin and the US dollar legal tender.

In the video broadcast on Bitcoin 2021, the multi-day conference in Miami was described as the largest Bitcoin event in history. President Najib Bakira announced the establishment of a partnership between El Salvador and Digital Holding Strike. Using Bitcoin technology to build the state's modern financial infrastructure.

“Next week I will be introducing a bill in Congress to legal tender for bitcoin,” Bakira said.

“Bitcoin is the largest reserve asset and an excellent treasury network in history,” said Jack Mallers, founder of payment platform Strike. Bitcoin holdings provide a way to protect developing economies from the potential shock of legal inflation.

Mallers said on the main stage that the move will help unlock the power and potential of Bitcoin for everyday open network use cases for the benefit of individuals, businesses, and public services.

El Salvador Acquires Bitcoin:

El Salvador is primarily a cash economy, with nearly 70% of the population lacking a bank account or credit card.

Remittances, or money sent by migrants, represent more than 20% of El Salvador's GDP.

Existing services may charge a fee of 10% or more for these international transfers, sometimes it can take several days to arrive, and sometimes a physical receipt is required.

The assets do not support the world's largest digital currency. He did not gain the full confidence and support of any government.

Part of its value is that numbers are scarce. There will only be 21 million bitcoins.

El Salvador has formed the world's largest digital currency leadership team to create a new Bitcoin-based financial ecosystem.

The New Thought Party of Al-Baqara dominates the country's legislature. Hence, the bill is likely to pass.

Adam Back, CEO of Blockstream, said, “El Salvador will be the first country expected to offer legal tender for Bitcoin.

In addition, Buck plans to introduce technologies such as liquid infrastructure and satellites to make El Salvador a model for the world.

“We are pleased to support El Salvador in introducing the bitcoin standard,” he said.

It is reported that this is not the first step in El Salvador towards becoming the largest digital currency in the world. In March, Strike launched a mobile payment app there and it quickly became the most downloaded app in the country.

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