Alongside the U.S. dollar, bitcoin will probably become a legal tender in El Salvador as the country introduces the accompanying legislation supporting the process — reports CNBC.
Nayib Bukele, president of El Salvador, announced this during a video conference at Bitcoin 2021, the largest bitcoin event in history. As Bukele announced, he wishes to build a modern financial infrastructure using crypto tech in partnership with Strike, a digital wallet company.
Jack Mallers, the founder and CEO of Strike said that this move will be huge for the currency.
As he said, bitcoin is among the greatest reserve assets and monetary networks ever created. According to him, holding bitcoin can help developing countries from currency inflation shocks, and this step will also help to popularize bitcoin in personal finances as well.
Details about the entire process are still not entirely clear but journalists were told that El Salvador has already assembled a team of professionals to help build a new crypto-friendly financial system.
Adam Back, CEO of Blockstream, commented that this move (making bitcoin a legal tender nationwide) was only a matter of time.
On the other hand, this isn’t the country’s first “tango” with crypto. In March, Strike’s mobile payment bitcoin app launched in El Salvador, quickly making it the most downloaded app in the country, improving its latest crypto figures in the process.
Experts believed that the bill would pass since Bukele’s party is in control of El Salvador’s Legislative Assembly, and it certainly did on Tuesday by a large majority of votes.