El Salvador is expected to become the first country to use Bitcoin as legal tender

El Salvador President Nayib Bukele, recently attended the Bitcoin 2021 conference in Miami, the United States through online video.

The Bitcoin 2021 conference is held every year and is mainly attended by Bitcoin identification supporters. This conference is mainly for publicity.

It is well known that Bitcoin is not recognized in many countries and regions around the world, and it is even illegal to trade Bitcoin in some countries such as India.

For the support of Bitcoin, it is difficult for major countries to recognize Bitcoin, not to mention that there will be countries that use Bitcoin as their legal tender.

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“Bitcoin vs. Ethereum”by QuoteInspector is licensed under CC BY-ND 2.0

But at this year’s consensus meeting, this kind of thing turned around: the current president of El Salvador, Nayib Bukele, hopes to use Bitcoin as the legal tender of El Salvador.

Of course, Nayib Bukele represents the executive power, so it can be proposed but cannot be decided, so Nayib Bukele is going to propose relevant legislation to Congress next week.

If it can get the consent of Congress and the legislature, then El Salvador is expected to become the world’s first independent sovereign country to use Bitcoin as legal tender.

Taking into account that the new party represented by Nayib Bukele has an absolute majority in the Salvadoran Congress, the possibility of the passage of relevant legislative proposals will also be very high.

Many institutions are reluctant to use Bitcoin because the price of Bitcoin is extremely volatile, so there may be a higher difference in payment using Bitcoin.

However, judging from the current statement of Nayib Bukele, the country may use Bitcoin more as a payment channel in order to reduce the handling fees of the international settlement system.

For example, the money remitted through Bitcoin is quickly converted into Bitcoin for payment and then converted into U.S. dollars, so the difference may not be too high.

Of course, what Nayib Bukele considers more is the country’s reserves of Bitcoin as legal tender. After all, the price of Bitcoin continues to soar and the potential benefits are higher.

Therefore, we need to wait for the legislative proposal to find out which method El Salvador intends to adopt to solve the volatility problem faced by the adoption of Bitcoin.