El Salvador plans to make Bitcoin legal tender
If the bill is passed, the Central American country will become the first in the world to legally accept the well-known cryptocurrency.
El Salvadoran President Nayib Bukele said on Saturday he would send a bill to Congress next week to tender for the legal tender Bitcoin in the country.
"In the short term, this will create jobs and help provide for investment in thousands outside the formal economy," Bukela said in a video shown at the Bitcoin 2021 conference in Miami.
Bitcoin withdrawal in El Salvador
El Salvador is working with Strike, a mobile payment app launched in the country in March, to roll out Bitcoin technology.
"More than 70% of people in El Salvador do not have a bank account. They are not in the financial system," said Jack Mallers, founder of a mobile payment system at a conference on Saturday.
"Receiving digital money as a legal tender provides El Salvador a highly secure, efficient and integrated payment network globally," Mallers said.
What is Bitcoin?
Bitcoin is a cryptocurrency, privately owned and operated outside the government.
Bitcoin transactions are digitally verified using blockchain technology, which is not tied to a single server but to a global computer network, which puts them at risk of fraud. This is also a process that allows for the extraction of new coins, even though there is a gap in the development of new Bitcoins - 21 million - a figure to be achieved by 2040.
Bitcoin rose from $ 0.0008 to $ 0.08 in its first five days after launch and rose to nearly $ 60,000 (€ 49,315) this year before hitting 40% last month.
Digital currencies appear to be the future of other countries, including China, which is currently testing its own digital currency. Many financial analysts think that blockchain technology behind currencies such as Bitcoin will help in the extraction of existing government-sponsored digital currencies.
But crypto critics think that the instability in the prices of Bitcoin, Ether and others hinders the issuance of these funds as it makes it harder for businesses to accept payments for goods and services.
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