(EL SALVADOR) - The Republic of El Salvador’s President Nayib Bukele, announced to the Bitcoin 2021 conference in Miami, Florida, that he's working on legislation to establish bitcoin as an official currency. That would make the Pacific Coast Central American country the first sovereign nation to adopt a cryptocurrency as legal tender.
His office will submit the bill to the legislature next week.
In a video broadcast to the conference Bukele announced to wild applause:
"In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy."
In El Salvador, 70% of the population is unbanked.
They don't have access to the conveniences and safeguards of institutional banking that are enjoyed by most people in OECD countries.
Bukele hopes this unprecedented step in global monetary and financial policy will not only make reliable banking more accessible to citizens of El Salvador, but protect their savings from global central bank inflation of fiat money.
"Financial inclusion is not only a moral imperative, but also a way to grow the country’s economy, providing access to credit, savings, investment and secure transactions. We hope that this decision will be just the beginning in providing a space where some of the leading innovators can reimagine the future of finance."Since making the announcement over the weekend, Bukele retweeted an important insight about Bukele's approach to normalizing and legalizing bitcoin, from crypto podcaster and Ministry of Nodes co-founder Stephan Livera, saying:
El Salvador Bitcoin legal tender news might be a good opportunity for people to go work remotely from El Salvador and stack sats that won't have capital gains tax on disposal...Making bitcoin legal tender reclassifies it out of its currently heavily-taxed status as a digital security in El Salvador and other countries, where it's legal, but taxed heavily for its massive capital gains when holders sell coin they bought at lower market prices.
Update (12:50am 6/7/21): This publication is not presently in a position to offer an opinion about U.S. media and NGO criticisms of President Bukele's governance in a far away country with a recent history of severe social problems that most Americans are unfamiliar with. If you do your own research and want to share information or opinions, you are welcome to do so in the comments section on this article.