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El Salvador President Nayib Bukele said he plans to pass legislation that will make Bitcoin a legal tender in the country. He claims that doing this will "improve the lives and future of millions," as it would create jobs and provide access to credit, savings, investments and secure transactions. Bukele said he would introduce a corresponding bill to the Congress in the coming days.
At the moment, El Salvador has a low banking penetration rate, not to mention about 70% of the population do not even have a bank account. Bukele said legalizing Bitcoin could improve the situation since it will facilitate faster transfers of remittances.
In addition, last month, El Salvador's bonds plummeted, after the administration sacked five senior judges and the attorney general. Wall Street responded to this by selling assets, for example, firms such as Oppenheimer, Amherst Pierpont and Allianz sold promissory notes or advised clients to cut their assets.
According to opinion polls, Bukele is one of the most popular leaders in the region, with an approval rating of over 85%. He actively follows social media and charted an unconventional path into politics. He worked for his father's marketing agency before serving as mayor of San Salvador and its suburbs. Bukele ran for president in 2018, with promises to curb corruption and criminal gangs. He became the first president in nearly 30 years to win without the backing of a major party.
If the Congress approves the bill, El Salvador will become the first country in the world to legalize BTC as a means of payment.
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