El Salvador is about to become the first country to recognize bitcoin as a legal offer.
El Salvador will be the first country to legalize Bitcoin, according to Salvadoran President Nayib Bukele, who made the announcement in a video recorded at the Bitcoin 2021 conference in Miami.
President Nayib Bukele says that Bitcoin will make it easier for Salvadorans living abroad to send money home.
El Salvador would become the first country in the world to formally recognize cryptocurrencies as legal currency, allowing the “financial inclusion of thousands of people who are currently excluded from the legal economy,” according to Bukele. Remittances from Salvadorans who work abroad are an important part of the economy, representing approximately 22% of GDP.
Nayib Bukele, the country’s president, has stated that he intends to introduce legislation that recognizes cryptocurrencies in the same way that the US dollar is recognized in the country.
“This week, I will introduce legislation in Congress to legalize bitcoin,” Bukele said.
“They asked me to help them develop a strategy, saying that they saw bitcoin as a world-class currency and that they needed to develop a bitcoin strategy to help these individuals.”
Remittances represent a large part of El Salvador’s economy, and switching to a digital currency can help family members avoid the high fees associated with monthly money transfers.
According to Bukele, El Salvador collaborated with the digital finance company Strike to determine the logistics of the decision.