El Salvador will introduce Bitcoin as legal tender

Photo: Courtesy of the Twitter account @TheBitcoinConf.
Editorial Dept. Voz de la Diaspora

The Savior – President Nayib Bukele announced about the new Bitcoin currency at the virtual conference held in Miami, U.S, which will include legislation that can convert the country into accepting this currency that will help to obtain greater financial income in the country.

The Salvadoran president thus expressed himself in the virtual conference: "Next week I will send to the Legislative Assembly a bill that will convert Bitcoin into legal tender", así lo dijo el presidente Bukele.

Bitcoin fue creado el uno de noviembre de 2008, it is an alternative currency without control, es decir que hasta el momento no hay un respaldo certero para ningún Estado o banco central.

The Salvadoran president said that the country is partnering with the company Digital Strike, to kickstart a modern technological financial infrastructure using Bitcoin, at the moment the Central American country has the main currency of the US dollar.

Photo: Courtesy of the Twitter account @TheBitcoinConf.

It should be noted that El Salvador has a high percentage of economic cash handling and an approximate of 70% people don't have bank accounts or credit cards, and an approximate percentage of 20% It is represented by the remittances of the Gross Domestic Product (Schedule) from the country.

Some of the disadvantages that the country can have is that the services to receive money from abroad can charge up to a 10% for international transfers, other times the money may take more than a day to arrive or requires to be withdrawn in cash.

Likewise, it should also be taken into account that currently Bitcoin does not have the backing of an asset and of any government. Its value depends on the fact that digitally it is scarce. It is estimated that they can only exist 21 million Bitcoins, at the moment there are more than 19 1 billion Bitcoin in circulation.

Photo: Courtesy.

The Central American country already has a project called Bitcoin Beach, which was launched during the pandemic in the 2020, específicamente en la playa El Zonte, located in the south west of El Salvador, the area has a population of 3,000 inhabitants and has generated a positive impact on the local community.

The details of the currency's implementation are unknown

To date, the details of how the operation will be implemented in El Salvador have not been revealed., but nevertheless, authorities held meetings with Bitcoin leaders to help design the financial ecosystem. To Adam Back, Blockstream CEO, Nayib Bukele's ad is innovative and cutting edge: "It was inevitable, but here is the first country on the way to convert bitcoin into legal tender ", the Salvadoran president said.

The repercussions could be positive for the company

According to Jack Mallers, founder of the payment platform Lightnigh Network Strike, this will become an announcement heard globally that will have positive repercussions for Bitcoin, “What is transformative here is that Bitcoin is the largest reserve asset ever created., as a superior monetary network ", he stated.

Likewise Jack Mallers, said holding Bitcoin provides a way to protect developing economies from potential fiat currency inflation shocks. He also explained that the action will help unleash the power and potential of cryptocurrency for everyday use cases on an open network that benefits people., public sector companies and services.