El Savador President Nayib Bukele revealed he will propose a bill that makes Bitcoin (BTC) a legal tender in addition to the US dollar.
The proposal will be submitted this week and if the proposal is approved, the country located in Central America will be the first country to recognize Bitcoin as a legal currency.
Clearly the president of the country, the efforts highlighted are for the future. This was supported by a tweet uploaded on June 6, telling that 1% of Bitcoin inflows into El Savador increased the gross domestic product (GDP) rate by 25%.
#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%.
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.
- Nayib Bukele 🇸🇻 (@nayibbukele) June 6, 2021
Not only that, the bill also opens up wider employment opportunities to 70% of the population who reportedly do not have bank accounts and serve in the informal economy.
To make the effort a success, the government will work with digital wallet firm, Strike to develop a financial framework according to the digital monetary format.
However, this move can be considered a big bet given that Bitcoin is not backed by any stable resources such as gold or large national governments.
The crypto market began to show impressive growth with a record over $ 2.5 trillion in mid -May 2020 as a result of increased interest among institutional investors.
At the time of writing, Bitcoin (BTC) is trading at $ 32,800, down nearly 10% in 24 hours. This negative movement of the crypto king also dragged the performance of other cryptocurrencies to unfavorable price levels.
