El Salvador is the first country in the world to want bitcoin as legal tender
El Salvador wants to make the digital currency Bitcoin a legal tender. The country's president, Nayib Bukele, will introduce a bill next week. If parliament approves the proposal, it would the first country to do so.
It will contribute to financial inclusion and create jobs
The announcement was made in a recorded video broadcast at the Bitcoin 2021 conference in Miami, USA, during a presentation hosted by Jack Mallers, the man behind the payment's app Strike."In the short term, this will create jobs and contribute to the financial inclusion of thousands of people outside the formal economy," said President Bukele.
Over 70% of El Salvador's active population does not have a bank account
“Over 70% of El Salvador's active population does not have a bank account. These people are not in the financial system", added Mallers, who said he worked with President Bukele to establish the logistics of this initiative.“They asked me to help draft a bill and told me that they view bitcoin as a world-class currency, and that we need to put together a bitcoin plan to help these people.”
Bukele's announcement was portrayed by Mallers as a protest
Bukele's announcement was portrayed by Mallers as a protest to "extraordinary monetary expansion." He blamed the US Federal Reserve in particular for “crushing emerging markets” like El Salvador's dollarized economy by issuing greenbacks ad nauseam.A small passage from what appeared to be Bukele's bill reflected this sentiment: "Central banks are increasingly taking activities that may cause inflation."
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