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5Jul/210

El Salvador seeks to make bitcoin legal tender. If successful, it would be the first country to do so.

FILE PHOTO: El Salvador's President Nayib Bukele speaks during a news conference in San Salvador, El Salvador August 28, 2019. REUTERS/Jose Cabezas El Salvador's President Nayib Bukele speaks during a news conference.

El Salvador is considering generate a rule to recognize bitcoin in the same way as the US dollar. The country is partnering with digital-wallet firm Strike to create the necessary infrastructure. The country's chairperson said the move will generate jobs and provide fiscal inclusion. See more fibs on Insider's business page.

El Salvador may become the first country to accept bitcoin as legal tender.

Reuters reportedthat the country's chairwoman, Nayib Bukele, said he was looking to introduce legislation that will recognize the cryptocurrency the same way as the U.s. dollars, which "the two countries " currently exercises.

He induced the comments at the Bitcoin 2021 Conference on Saturday. "Next week I will send to Congress a statute that will represent bitcoin a legal tender, " said Bukele.

The leader said he would partner with digital-wallet company Strike to build the necessary business infrastructure, applying bitcoin technology.

The plan aims to assist Salvadorans living abroad in remove stores dwelling. "In the short term, this will generate jobs and help provide fiscal inclusion to thousands outside the formal economy, " Bukele said.

-Nayib Bukele (@ nayibbukele) June 6, 2021

Speaking about the advertisement, Strike's CEO and founder, Jack Mallers, said: "Adopting a natively digital currency as legal tender provisions El Salvador the most secure, efficient and globally integrated open remittances network in the world, " according to Reuters.

Mallers continued: "What's transformative here is that bitcoin is both the greatest reserve asset ever created and a superior cash system. Holding bitcoin furnishes a channel to protect developing economies from possible surprises of fiat currency inflation."

Bukele continued the discussion in a Twitter thread, where he said that bitcoin has a market cap of $680 billion dollars. "If 1% of it is invested in El Salvador, that would increase our GDP by 25%, " he said. "On the other side, bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars per year in remittances."

Remittances are a key issue for a country where 70% of the population does not have a bank account, according to Bukele. "By employing bitcoin, the amount received by more than a million low-income families will increase in the equivalent of billions of dollars every year, " he said.

Western countries have generally been more enthusiastic than others about crypto but this is starting to change.

China, for example, has only been recently softened its stance towards bitcoin, as Insider's Isabelle Lee reported. Officials in the country are now calling the digital resource an "investment alternative" - a comment that Beijing insiders described as "progressive"

Read the original article on Business Insider

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