El Salvador is preparing an initiative to legalize Bitcoin as a currency in the country

President saviorAnd the here to watch, announced that he will present to Congress next week a bill in which he seeks to obtain Bitcoin It is legal tender in the country.

“Next week, I will send to Congress a bill that would turn Bitcoin into legal tender,” Bukele said in a video message presented at the Bitcoin 2021 conference held in Miami, USA on June 4-5.

As the president explained in the video, the aim of this measure is to create jobs and also “provide financial inclusion for thousands of people outside the formal economy.”

Due to the Covid-19 pandemic, the Salvadoran economy will contract during 2020 by 7.9%, but the Central Reserve Bank (BCR) forecasts that by the end of 2021 it will grow by about 6%.

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For now, the Salvadoran government has not provided further details about the proposed law on bitcoin that will be introduced to Congress, which is dominated by allies of President Bukele.

El Salvador adopted the Monetary Integration Law in 2001, which gave legal currency to the dollar in the Salvadorian economy.

In El Salvador’s dollar-dependent economy, remittances from Salvadorans from abroad are an important subsidy and equal 22% of GDP.

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In 2020, remittances totaled $5.918 billion, an increase of 4.8% over 2019, according to official reports.

The total entry of remittances into the country between the last two months of January and March was more than $1.705 billion, according to the Central Reserve Bank.

jabf / lsm

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