Why is Nayib Bukele in the news?
The President of El Salvador country is Mr. Nayib Bukele. He said that Bitcoin will be considered as legal tender. He is sending the bill to the parliament to make it national currency. The Party named New Ideas Party enjoys a super majority in the legislature of El Salvador. Hence there is a strong likelihood that the bill will pass and bitcoin will be the national currency. It is a small country in Central America. The capital of El Salvador is San Salvador which is also the most populous city in it. The country shares a boundary with Guatemala in the southern and Honduras in the eastern.
Why is it needed? Let's have a look in detail
As the president will send the bill to parliament and if the bill approves then Salvador will become the first country with bitcoin as a national currency. It will be the first to adopt a virtual currency. There are three nations Panama, Ecuador, and El Salvador which have dollarized economy.
President says that for the short term it will create more employments and help provide financial inclusion to thousands of people who are outside the formal economy.
What does the tweet say?
President also tweeted about this big decision saying that Bitcoin has a market capitalization of $680 billion dollars. If we invest in it, it will further help the country’s GDP growth.
#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%.
Besides, a big chunk of those 6 billion dollars is lost to intermediaries.
By using #Bitcoin, the amount received by more than a million low income families will increase in the equivalent of billions of dollars every year.
This will improve lives and the future of millions.
— Nayib Bukele 🇸🇻 (@nayibbukele) June 6, 2021
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