El Salvador is taking steps to become the first sovereign nation to adopt bitcoin as legal tender, alongside the US dollar, potentially setting the stage for other nations to reduce central-bank influence over their economies.

A bill enabling San Salvador to recognize bitcoin as legal tender will be submitted to the country’s Legislative Assembly this week, President Nayib Bukele said in a video message that was shown at the Bitcoin 2021 conference in Miami.

Bukele’s political party has firm control of the assembly. In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy.

Strike, a Bitcoin Lightning Network payment application, is working with Bukele’s administration to implement the cryptocurrency plan.

“This is the shot heard ’round the world for bitcoin,” Strike founder Jack Mallers said in a statement. What’s transformative here is that bitcoin is both the greatest reserve asset ever created and a superior monetary network.

Holding bitcoin can help protect a developing nation’s economy from fiat currency inflation. Central banks (including IMF) also have manipulated money supplies to trigger recessions, like what happened for instance in Venezuela.

About 70% of El Salvadorans don’t have a bank account, according to Strike. El Salvador is the smallest country in Central America and one of the poorest nations in the western hemisphere.

Use of bitcoin will make the country’s financial system more inclusive and allow people to send money home without remittance services taking out expensive fees.

We want to make cross-border payments free, Mallers said in a speech at Bitcoin 2021. We want to solve the remittance problem for places that need it the most.

Bitcoin advocates see the move as both an important precedent for developing nations and a breakthrough for cryptocurrency, which many countries have fought.

There is not a dry eye on bitcoin Twitter tonight, podcast host Daniel Prince said. El Salvador adopting bitcoin as legal tender in order to escape the tyranny of central banks to rescue their people is what this is all about.

RT. com / ABC Flash Point Crypto Currency News 2021.

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RT-Russia
RT-Russia
Guest
08-06-21 16:32

Investor and newsletter author Anthony Pompliano called the El Salvador deal “one small step for bitcoin, but a giant step forward for humanity.” He added, “This is the first country to take such a courageous step, but it won’t be the last.”

APB
APB
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Reply to  RT-Russia
08-06-21 16:34

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Cannot
Cannot
Guest
08-06-21 16:35

When the law passes, El Salvador can expect a great influx of the bitcoin industry that will push their economy to unbelievable heights.

I expect Russia to be following this quite soon, now that they have dumped the dollar and will take on gold, digital gold/bitcoin is the next logical step.

When that happens watch the domino effect. Then again Iran could be the first big economy to take the leap.

APB
APB
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Reply to  Cannot
08-06-21 16:36

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Windy1675
Windy1675
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08-06-21 16:40

About 70% of El Salvadorans don’t have a bank account, please tell us what percentile falls into that category which cannot afford a reliable network connection in that country, or in the least a consistently functional power grid?

CrabCoon
CrabCoon
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Reply to  Windy1675
08-06-21 16:40

That is the point exactly, that is why they need Bitcoin. Central banks make people poor, and you don’t need a bank account. Thankfully it doesn’t even need reliable internet to transfer.