-
If backed, El Salvador would be first in the world to formally adopt Bitcoin
If plan of El Salvador's president backed by congress, his country would be first in the world to formally adopt the digital currency. He twitted, "Bitcoin has a market cap of $680 billion dollars. If 1% of it is invested in El Salvador, that would increase our GDP by 25%. On the other side, Bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances." El Salvador
Bitcoin would be used alongside the US dollar, El Salvador's official currency.
According to BBC, president Nayib Bukele says Bitcoin will make it easier for Salvadorans living abroad to send payments home.
"In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Mr Bukele told a Bitcoin conference in Florida, adding that it could also boost investment to the country.
The president would send the legislation to congress next week. Should it pass, the move would open up financial services to the 70% of Salvadorans who do not have bank accounts, BBC quoting the president.
El Salvador's economy relies heavily on remittances, or money sent home from abroad, which make up around 20% of the country's gross domestic product (GDP). El Salvador
More than two million Salvadorans live outside the country, but they continue to keep close ties to their place of birth, sending back more than $4bn (£2.9bn) each year.
Current services can charge fees for such transfers, which can take days to arrive and sometimes need to be picked up in person, according to the announcement.
The president did not give more details about how the policy would work, but said it will improve the lives of millions.
Bitcoin, a virtual asset with no direct connection to the real economy, has seen large fluctuations in value over the years.
Most of the world's central banks are looking into the possibility of creating their own digital currencies. In April, the Bank of England announced it was looking into creating a digital money that would exist alongside cash and bank deposits. El Salvador
Source: BBC
Image Source: REUTERS-BBC
You May Also Like
Popular Posts
Caricature
NATO Secretary-General Ex...
- November 7, 2024
Amid growing anxiety among several European countries participating in NATO over Donald Trump's victory in the U.S. presidential election, NATO Secretary-General Mark Rutte stated he looks forward to sitting down with Trump.
Upon arriving to participate in the summit of the European Political Community, which includes around forty heads of state in Budapest, he said, "I look forward to sitting with the elected U.S. president and seeing how we will collectively ensure we meet challenges, including the threats from Russia and North Korea." He also noted that the strengthening of ties between Russia and North Korea poses a threat to the United States as well, according to reports from Agence France-Presse.
Before Trump's victory, Rutte expressed confidence that a united Washington would remain part of the defensive alliance, even if Trump became the 47th president of the United States. In an interview with German public broadcaster ZDF last Monday night, he stated that both Republicans and Democrats understand that NATO serves not only the security of Europe but also that of America. He added that both candidates are aware that the security of the United States is closely tied to NATO.
On Wednesday, NATO congratulated Trump on his victory but did not address the Ukrainian issue.
It is noteworthy that the relationship between the elected U.S. president and the defense alliance was not the best during his first term in the White House. Trump criticized NATO member states multiple times and even hinted at withdrawing from the alliance unless they increased their financial contributions.
Additionally, the issue of the Russian-Ukrainian war is one of the matters that complicate relations between the two sides, especially since Trump has repeatedly stated that he can end this ongoing conflict, which began in 2022, quickly. He implied that he had a peace plan between Kyiv and Moscow, while his vice president, JD Vance, revealed aspects of that plan, which stipulated Ukraine's commitment not to join NATO, thereby sending reassuring signals to the Russians.
Furthermore, many NATO member states in Europe fear that Trump might halt military aid to Ukraine after he previously criticized the U.S. for pouring funds into supporting Ukrainian President Volodymyr Zelensky.
opinion
Report
ads
Newsletter
Subscribe to our mailing list to get the new updates!