El Salvador’s president to propose making Bitcoin legal tender

El Salvador President Nayib Bukele said that he will propose making Bitcoin a legal tender in the country, The Associated Press reported on Sunday.

“Next week I will send to Congress a bill that will make Bitcoin a legal tender in El Salvador,” Bukele said Saturday. “In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy and in the medium and long term we hope that this small decision can help us push humanity at least a tiny bit into the right direction.” 

Welcome to the future #Bitcoin pic.twitter.com/j30vcZVXvJ

— Nayib Bukele (@nayibbukele) June 5, 2021

Bukele also said Bitcion could help grow El Salvador’s gross domestic product by 25 percent. 

#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.

— Nayib Bukele (@nayibbukele) June 6, 2021

El Salvdaor’s current currency is the U.S. dollar. Citizens of El Salvador who live in the U.S. sent back about $6 billion in remittances last year, according to the AP. 

Bukele, who has a high popularity rating in his country, was praised for playing a role in obtaining COVID-19 vaccines for his country and establishing a fluid vaccination program as well. 

Bukele’s party, New Ideas party, holds a majority of seats in the congress where his proposed legislation could be passed, according to the AP.