Last Saturday the 2021 Bitcoin Conference ended in Miami, dubbed by some "the biggest Bitcoin event in history". At its inauguration, the mayor of the city, Francis Suárez, vindicated his efforts to make it the "world capital" of cryptocurrency ...
... however, an unforeseen announcement could move that unofficial capital city a few thousand kilometers further south of the continent and, incidentally, change the legal status of bitcoin around the world.
During the talk by Jack Mallers, founder of the cryptocurrency wallet Strike who has recently been residing in El Salvador, he projected a prerecorded video starring none other than Nayib Bukele, the controversial president of that Central American republic.
In this video, Bukele affirms that throughout this week he plans to refer to the legislature of his country a bill aimed at converting Bitcoin into legal tender.
Bitcoin as a means of financial inclusion
This not only would make El Salvador the first country to formally adopt this cryptocurrencyRather, "in the short term, it will create jobs and help provide financial inclusion to thousands of people outside the formal economy."
70% of the Salvadoran population lacks a bank account and works in the informal economy. This decision could provide "access to credit, savings, investments and secure transactions," according to its president.
Yesterday, Sunday, Bukele reaffirmed his intentions in a Twitter thread:
"Bitcoin has a market capitalization of 680,000 million dollars: if 1% is invested in El Salvador, that would increase our GDP by 25%."
"In addition, Bitcoin will have 10 million new potential users and the fastest growing way to transfer $ 6 billion a year in remittances (of which, much of it is lost to intermediaries)."
A bill that will not meet much resistance in the National Assembly
Mallers, who announced the imminent opening of Strike offices in El Salvador, defined Bukele's announcement as "a shot in favor of Bitcoin that has been heard around the world".
The investor (and standard bearer of the cryptocurrency) Tim Draper assured that after this "brilliant move", El Salvador will begin to receive many entrepreneurs and investors in the coming days. Bukele has already shown himself willing to embracing "innovators" who want to "reimagine the future of finance".
Beyond the above, Bukele has given few technical details about the legislation he wants to pass (beyond the fact that would coexist with the current legal tender of the country, the US dollar) ...
… But we do know that it is highly unlikely that the Salvadoran National Assembly will overthrow the bill: just three months ago, Bukele's party (New Ideas) won 56 seats out of 84. That qualified majority, added to the support of 5 deputies from another formation, has so far guaranteed approve all the political reforms that it has promoted.
Via | ZeroHedge
Image | Original from @PresidenciaSV on Twitter