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El Salvador risks becoming the first country to accept Bitcoin - Markets

El Salvador risks becoming the first country to accept Bitcoin – Markets

El Salvador risks becoming the first country to adopt Bitcoin as a legal currency. The announcement was made by the head of state, Neb Böckel, in a video recorded for the Bitcoin Conference 2021, which was held in Miami, USA.

“Next week I will be sending to the conference a proposal to make bitcoin a legal form of payment,” Bukele said, citing event organizers. If that happens, El Salvador will be the hero of a historical fact, as cryptocurrencies have earned the reserves of regulators and central banks.

Bukele, a 39-year-old populist politician, came to power in 2019 and has a large majority of 56 seats in 84 seats in Congress, which means he will likely be able to pass the proposal on formalizing bitcoin as a payment method without difficulty. .

The president of El Salvador believes that cryptocurrency could be “one of those ideas” that make the world a better place. “In the short term, it will create jobs and help increase the financial literacy of millions of people outside the formal economy. In the medium term we hope that this small decision will help us push humanity, at least a little, to a more right decision,” he stated in the said video about Three minutes.

To implement this measure, Nayib Bukele has signed a partnership with digital payments company Strike, which will create the new financial infrastructure in the country. Last March, the tech company launched a mobile payments app in that country, which was a hit, with a huge download volume.

Jack Mallers, CEO of Strike, confirmed the partnership, stressing to CNN that “more than 70% of the working population in El Salvador does not have a bank account.” “They asked me to design a plan and saw Bitcoin as a global monetary asset that we need to use to help these people.”

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The high volatility of bitcoin has led to a lack of confidence in central banks, analysts, and governments. This cryptocurrency has already lost about half of its value this year, after breaking the historic $60,000 mark. Environmental issues surrounding cryptocurrencies have drawn widespread criticism.