Recently, El Salvador, a small country in Central America, is seeking legislation to legalize Bitcoin, which means that it may become the world’s first sovereign country to use Bitcoin as legal tender.

At the Bitcoin Conference in Florida, El Salvador’s President Nayib Bukele announced that El Salvador will work with digital wallet company Strike to use Bitcoin technology to build the country’s modern financial infrastructure.

Buckley said: “Next week I will submit a bill to Congress to make Bitcoin legal tender.” Buckley’s New Ideas party controls the country’s legislative assembly, so the bill is very likely Passed.

The founder of the payment platform Strike (Jack Mallers) said that this move will resound in the Bitcoin world. Miles said: “The revolutionary thing about Bitcoin is that it is not only the greatest reserve asset in history, but also a superior currency network. Holding Bitcoin provides a way to protect developing economies from Affected by the potential impact of fiat currency inflation.”

Why did Salvador dare to be the first to eat crabs?

El Salvador is a coastal country located in the northern part of Central America and the most densely populated country in Central America. As of 2019, El Salvador has a population of approximately 6.7 million, and its industrial and agricultural economic foundation is relatively weak.

As a cash-based economy, approximately 70% of people in El Salvador do not have a bank account or credit card. The economy of El Salvador relies heavily on migrants’ remittances, and the money sent back to their home countries by migrants accounts for more than 20% of El Salvador’s GDP. According to foreign media reports, there are more than 2 million Salvadorans living abroad, but they still maintain contact with their hometowns, and remit more than 4 billion U.S. dollars each year.

The existing service agencies in El Salvador charge more than 10% of these international transfers, and the transfers sometimes take a few days to arrive, and sometimes they require residents to withdraw the money in person.

In this context, Bitcoin provides Salvadorans with a more convenient way to avoid high service fees when sending money back to their hometown. Bitcoin has the characteristics of decentralization, global circulation, and low transaction fees, which means that it is more convenient and cheaper for low-income groups without bank accounts.

President Bukley stated that the legalization of Bitcoin in the short term will make it easier for Salvadorans living overseas to send money domestically. It will also help create jobs and help thousands of people working in the informal economy provide financial inclusion. , It also helps to promote outside investment in the country.

Recently, El Salvador, a small country in Central America, is seeking legislation to legalize Bitcoin, which means that it may become the world’s first sovereign country to use Bitcoin as legal tender.

At the same time, according to the evaluation of foreign media, the 39-year-old President of El Salvador, Bukley, is a young leader who is proficient in media packaging and good at shaping popular images. Therefore, he is the first to announce his support for the legalization of Bitcoin, which will help him in Young supporters create an image of an innovator in their hearts.

This is not El Salvador’s first foray into Bitcoin. In March of this year, Strike launched a mobile payment application in El Salvador, which soon became the most downloaded application in the country.

According to foreign media, although the details of how Bitcoin legalization works have not yet been announced, El Salvador has formed a Bitcoin leadership team to help build a new financial ecosystem based on Bitcoin.

#KDA#