El Salvador’s president, Nayib Bukele, has stated that he aims to make bitcoin (BTC) legal tender in his country.
The 39-year-old argued that adopting the cryptocurrency will have both short- and long-term benefits while speaking at a BTC conference in Miami. El Salvador has seen an increase in jobs and increased investment.
In a series of tweets on June 6, he expanded on those benefits.
“#Bitcoin has a market cap of 680 billion dollars,” one of those tweets began. “If 1% of it is invested in El Salvador, that would increase our GDP by 25%. On the other side, #Bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances.”
President Bukele also went into greater detail regarding the advantages of BTC adoption for El Salvadorans.
“By using #Bitcoin, the amount received by more than a million low-income families will increase in the equivalent of billions of dollars every year. This will improve lives and the future of millions.
“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.”
On his official Twitter account, the president also changed his profile photo. He’s now dressed in official attire but with laser eyes.
Bukele is gaining popularity
The president’s declaration was greeted with rapturous applause and anticipation. Binance CEO Changpeng Zhao, for example, has already expressed his support.
Furthermore, Reuters reports that a mobile payment app, Strike said they were pleased with the new legislation. They also stated that they would collaborate closely with El Salvador in order to make bitcoin technology a success. El Salvador has been on Strike since March.
Next Monday, President Bukele will present a measure to Congress.
The world is moving toward cryptocurrency adoption
If Congress approves President Bukele’s idea, El Salvador will become the first government in the world to use bitcoin as legal cash. El Salvador is expected to utilize Bitcoin alongside the US Dollar as its legal currency if Congress approves the plan.
President Bukele appears to be intent on adopting the still-volatile BTC, which has witnessed a lot of volatility this year. Other countries, on the other hand, are looking into CBDCs.
China, for example, has made strides with its digital yuan. The CBDC’s deployment has yet to be given an official schedule by the country’s government. Nonetheless, various retail platforms and private banks are now participating in the trial program.
At the end of May, a former official from the People’s Bank of China came out in favor of the digital yuan. This was in response to comments made by Federal Reserve Chair Jerome Powell that China will utilize the CBDC to monitor its people’s payments. This was never a reason for the digital yuan, according to Yao Qian. He said that the CBDC was created as a countermeasure to the growing popularity of private payment platforms.