President Bukele has the backing of the majority of the people, and political analysts believe his proposal will pass. The Bitcoin community has reacted positively to the long anticipated news.
The president also announced that the government will work with Strike, a digital wallet firm, to build the framework required for using Bitcoin. Bitcoin will perform a significant role in the small Central American country, where around 70% of the population has no bank account, in keeping with the ‘banking the unbanked’ storyline.
Additionally, migrant money accounts for around 20% of the country’s gross domestic product (remittances). Bitcoin will play a key part in this by allowing for quick, transparent, and secure transactions. As a developing nation, it may also safeguard itself from inflation by keeping Bitcoin, according to Strike founder Jack Maller.
“What makes bitcoin so revolutionary is that it’s also the largest reserve asset and a smarter monetary network. Investing in bitcoin can help shield emerging economies from the effects of fiat currency inflation.”
President Bukele’s excitement was reflected in his desire to become a member of the “laser eyes” campaign, which he announced on Twitter. This is a initiative that started shortly after Bitcoin reached the $60,000 mark, with the goal of leading a buy-and-hodl effort all the way to $100,000. The president’s profile photo has been modified to include the layer eyes.
El Salvador is a small country with a small economy, yet this is seen as a positive development for global economies. It’s also been interpreted as a shot across the bow of other foreign economies. The Bitcoin community as a whole has been ecstatic, with industry leaders promising to help the country. The CEO of Blockstream, Adam Back, stated that this current development was unavoidable.
“We’re glad to aid El Salvador on its road towards acceptance of the Bitcoin Standard,” he continued, adding that he was ready to supply technologies such as Liquid and satellite connectivity. Companies and institutions are urged to help the people of El Salvador in the genuine ethos of the Bitcoin community, with the goal of educating them about financial independence and the function Bitcoin will serve in their lifestyles.”
#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
#NewProfilePic pic.twitter.com/JrMUkryZuk
— Nayib Bukele 🇸🇻 (@nayibbukele) June 6, 2021