Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ El Salvador seems to be the first country to accept bitcoin as legal tender

El Salvador seems to be the first country to accept bitcoin as legal tender

Naibb Bukele, President of El Salvador, addresses Congress at the Legislative Assembly Building in San Salvador, El Salvador, on Tuesday, June 1, 2021. Photographer: Camilo Friedman / Bloomberg via Getty Images

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MIAMI – El Salvador is seeking legislation to make it the world̵

7;s first sovereign state to accept bitcoin as legal tender, along with the US dollar.

In a video broadcast of Bitcoin 2021, a multi-day conference in Miami called the biggest bitcoin event in history, President Nayib Bukele announced El Salvador’s partnership with digital wallets company Strike to build the country’s modern financial infrastructure using bitcoin technology. .

Strike founder and CEO Jack Mahlers said that would decrease as the “shot is heard” around the world for bitcoins.

“What transforms here is that bitcoin is both the largest reserve asset ever created and an excellent monetary network. Holding bitcoin provides a way to protect emerging economies from potential shocks from fiat currency inflation,” he continued. Mahlers.

Speaking from the main stage, Mallers said the move would help unleash the power and potential of bitcoins for everyday use in an open network that benefits individuals, businesses and public sector services.

El Salvador is largely a monetary economy, where about 70% of people do not have bank accounts or credit cards. Remittances or money sent home by migrants account for more than 20% of El Salvador’s gross domestic product. Current services may charge 10% or more for these international transfers, which can sometimes take days to arrive and which sometimes require a physical claim.

Although details of how the distribution will work are yet to come, CNBC says El Salvador has assembled a team of bitcoin leaders to help build a new financial ecosystem with bitcoin as a core layer.

“It was inevitable, but here it is: the first country on the road to make bitcoin legal tender,” said Adam Beck, CEO of Blockstream.

Back said he plans to contribute with technologies such as Liquid and satellite infrastructure to make El Salvador a model for the world.

“We are pleased to help El Salvador on its path to adopting the bitcoin standard,” he said.

This is not Salvador’s first move in bitcoin. In March, Strike launched its mobile payment application there and quickly became the number one downloaded application in the country.

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