The president says that the nation adopts Bitcoin as legal tender. The adoption of Bitcoin is a step he believes will create jobs and promote financial inclusion.
Latin America’s youngest president
Bukele is Latin America’s youngest president who is also known to break from the norms. He told on Twitter that the lawmakers approved the legislation by a supermajority. He previously said that Bitcoin could boost the economy.
Moreover, Bitcoin can help counter El Salvador’s low banking penetration rate and also facilitate faster transfers for $6 billion of remittances a year. This move is to make the virtual coin legal tender, and it is a rare slice of good news for the most prominent cryptocurrency, which is struggling to recover from the rout in May.
The value of Bitcoin has roughly halved from a mid-April record of almost $65,000. Bitcoin is hurt in part by the billionaire Elon Musk’s criticism on the amount of energy the service underpinning needs. In addition, Douglas Rodriguez is the El Salvador Central Bank president.
Harsher Regulatory scrutiny
In an interview with state TV, he said that Country is already using Bitcoin, and people are not afraid of it. Moreover, he also said that a bitcoin could not replace the US dollar. However, there is harsher regulatory scrutiny in places like China. But the Bitcoin miners say that these are temporary setbacks and that the virtual currency’s role will expand.