El Salvador wants to legalize Bitcoin as a valid currency for the first time.

MONEY – El Salvador’s President Nayyib Bukele announced on Saturday that he will propose a bill next week to make the bitcoin cryptocurrency legal in his country.

“Next week, I will send a bill to Congress that converts bitcoin into legal tender,” Nayyib Bukele said in a video message presented at the Bitcoin 2021 conference in Miami, USA on June 4 and 5.

The goal is to create jobs and “provide access to financial services for thousands of people outside the legal economy,” he explained, pointing out that “70% of the population does not have a bank account and work in the informal economy.”

The El Salvadorian government has yet to detail the bill that will be considered by a parliament dominated by the president’s allies.

In El Salvador’s dollarized economy, remittances from Salvadorans from abroad are significant support and are equivalent to 22% of gross domestic product (GDP).

According to Naib Bukele, bitcoin represents “the fastest growing vehicle for transferring” these billions of dollars in remittances and prevents “millions of dollars” from falling into the pockets of middlemen.

“Through the use of bitcoin, the amount received by more than a million low-income families will increase by billions of dollars every year. This will improve the lives and future of millions of people, ”the president said.

Bitcoin is a decentralized asset with no direct connection to the real economy, based on blockchain technologies. This cryptocurrency remains highly volatile, but the growing interest of organizations and companies deemed stable is contributing to its gradual incorporation into the mores outside of insiders.

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