El Salvador is the world’s first sovereign country to embrace bitcoin as legal money. During the Miami Bitcoin 2021 conference, President Nayib Bukele announced his plans in a video that he posted on the internet.
Bukele said the nation is teaming up with digital wallet firm, Strike, to implement the country’s contemporary financial infrastructure with bitcoin-based technologies.
A significant impact was made in the last hours of the Bitcoin 2021 conference in Miami on Saturday, as the country of El Salvador had made its debut.
Bitcoin As Legal Tender
An animated film shown before a live audience featured El Salvador’s Bukele, who said that he would propose a measure in the country’s legislature to formally recognize Bitcoin as money. Masses of cheering people in Miami drowned out what he had to say.
El Salvador is preparing legislation that would make it the first sovereign country in the world to officially recognize bitcoin and the U.S. dollar as legal money.
President Nayib Bukele announced El Salvador’s partnership with digital wallet company, Strike, to build the country’s modern financial infrastructure using bitcoin technology during a video broadcast to Bitcoin 2021, a multiday conference in Miami that has been billed as the biggest Bitcoin event in history.
However, when the news was made, Bitcoin’s price did not instantly increase, which has resulted in a loss of 6% over the last 24 hours.
Digital Money in El Salvador
70% of the people in El Salvador do not have a bank account, and around 20% of the country’s GDP derives from money sent home by migrants. 20,000 new El Salvadorans have been onboarded with the Strike app each day since it launched in March.
He saw the law being drafted by Strike as the next stage in a relationship with the government of El Salvador.
Bukele has a large following, and his populist Nuevas Ideas party just won a landslide of votes. The new assembly, on the other hand, has lately come under criticism for ousting the attorney general and senior judges. The US Agency for International Development withdrew money from El Salvador’s national police and a public information institution as a result of the move, redirecting cash to civil society organizations.
El Salvador is one of just a few countries outside of the United States that utilizes the US dollar as its official currency. However, tensions between the Central American country and the United States have lately escalated as a result of El Salvador’s recent changes to its judicial system.
The US Agency for International Development (USAID) announced in May that it will divert funds from El Salvador’s governmental institutions (including the Attorney General’s office) to local human rights groups.
El Salvador will be the first country to recognize Bitcoin as legal cash if Bukele’s Bitcoin law passes without a hitch.