The President of El Salvador, Nayib Bukele is reportedly planning to adopt Bitcoin cryptocurrency as its new legal currency, making it the first country to do so.
Reportedly, the President broached the subject in a recording played at the 2021 Bitcoin conference in Miami, Florida. Adding that the action would help create jobs and deliver financial inclusion to those outside the official economy.
President Bukele, tweeted that if the cryptocurrency would be adopted in the future, it could possibly help more than a million families with low-income.
If the lawmakers pass the legislation, which the President aims to send their way the coming week, Bitcoin may become a fast and efficient system to transfer money within the country as well as remittances sent from abroad.
The Central American country's current national currency is the US dollar. Apparently, about a quarter of El Salvador's population lives in the United States.
In his tweet, the President spoke of the market capitalization of Bitcoin being $680 billion, stating that if 1% of it would be invested in El Salvador, the country’s GDP would rise by 25%.
President Bukele, who has maintained high approval ratings since assuming office in 2019, claimed that a major portion of the $6 billion in annual remittances sent home by Salvadorans residing abroad is lost to different intermediaries.
Despite its recent volatility, the President, whose New Ideas party has major support from legislature, praised Bitcoin adoption as a proposal that may help El Salvador prosper.
Reportedly, the Mr. Bukele also suggested that using #Bitcoin on social media platforms, would enable more than a million families with low-income to receive an increase in the amount of money acquired. Estimates seemingly show that it would increase by billions of dollars each year.