FILE - In this Feb. 9, 2020 file photo, El Salvador’s President Nayib Bukele, accompanied by members of the armed forces, speaks to his supporters outside Congress in San Salvador, El Salvador. Bukele’s party has swept all three main opposition parties during 2021’s midterm elections, giving him a mandate to change the way politics are run in the central American country. (AP Photo/Salvador Melendez, File)

FILE - In this Feb. 9, 2020 file photo, El Salvador’s President Nayib Bukele, accompanied by members of the armed forces, speaks to his supporters outside Congress in San Salvador, El Salvador. Bukele’s party has swept all three main opposition parties during 2021’s midterm elections, giving him a mandate to change the way politics are run in the central American country. (AP Photo/Salvador Melendez, File)

El Salvador president wants Bitcoin as legal tender

The U.S. dollar is El Salvador’s official currency

El Salvador President Nayib Bukele announced in a recorded message played at a Bitcoin conference in Miami Saturday that next week he will send proposed legislation to the country’s congress that would make the cryptocurrency legal tender in the Central American nation.

The 39-year-old president, who has maintained approval ratings above 90% and made Twitter his preferred way of communicating, characterized it as an idea that could help El Salvador move forward.

“Next week I will send to Congress a bill that will make Bitcoin a legal tender in El Salvador,” Bukele said. “In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy and in the medium and long term we hope that this small decision can help us push humanity at least a tiny bit into the right direction.”

The U.S. dollar is El Salvador’s official currency. About one quarter of El Salvador’s citizens live in the United States and last year, despite the pandemic, they sent home more than $6 billion in remittances.

Bukele’s New Ideas party holds a supermajority in the new congress seated May 1, giving any legislative proposal from the president a strong likelihood of passage.

Additional details of the plan were not released. But Bukele in subsequent messages on Twitter noted that Bitcoin could be “the fastest growing way to transfer 6 billion dollars a year in remittances.” He said that a big chunk of those money transfers were currently lost to intermediaries and with Bitcoin more than a million low-income families could benefit.

He also said 70% of El Salvador’s population does not have a bank account and works in the informal economy. Bitcoin could improve financial inclusion, he said.

Riding his high popularity and his party’s dominance performance in Feb. 28 elections, Bukele has concentrated power. His party’s supermajority in congress ousted the justices of the Constitutional Chamber of the Supreme Court May 1. They then replaced the attorney general.

They had been critical of some of Bukele’s more drastic measures during the pandemic, including a mandatory stay-at-home order and containment centers where those caught violating the policy were detained.

While enjoying a positive relationship with former U.S. President Donald Trump, Bukele has had a much more tense relationship with the administration of President Joe Biden.

Last month, the White House Special Envoy for the Northern Triangle Ricardo Zúñiga said during a visit to El Salvador that the U.S. government would like to see El Salvador reverse the moves against the court and the attorney general. Bukele said that would not happen.

Bukele’s concentration of power, attacks on critics and open disdain for checks on his power have raised concerns about El Salvador’s path. However, Bukele has a wide base of support in part due to the utter failure of the country’s traditional parties who ruled during the past 30 years to improve people’s lives and to his ability to provide short-term benefits.

Bukele has been praised for aggressively obtaining COVID-19 vaccines and running an efficient vaccination program far more successful than El Salvador’s neighbors.

The Associated Press


Like us on Facebook and follow us on Twitter.

cryptocurrencyEl Salvador

Just Posted

Soccer games returned to Max Turyk in Fernie this May and June, after a year-long break due to COVID. (Contributed by Yori Jamin)
Fernie kids get stuck into soccer

Youth soccer games returned to Max Turyk for May and June after a year-long break

A small scale example of how big the maximus dinosaur is compared to Sparwood's Titan truck. (Image courtesy of District of Sparwood)
Sparwood goes digging for fossils (maybe)

The district is exploring options that could see it acquire a giant dinosaur skeleton

Pride and Transgender flags wave on the lawn of Fernie's City Hall. (Soranne Floarea/ The Free Press)
Fernie Pride launches inclusivity survey

The survey will help identify gaps in supports for the LGBTQ2+ community in the Elk Valley

The freshly re-painted rainbow crossings in Fernie in 2021. (Scott Tibballs / The Free Press)
Rainbow crossings come to Fernie

Volunteers painted the crossings at 3rd Ave and 5th Street in Fernie in pride colours

Coal Creek and forested land near Fernie, B.C. (Scott Tibballs / The Free Press)
Elk Valley Regional Land Trust inks deal with Community Foundation of Kootenay Rockies

Donations to the trusts project to secure forested land in the Elk Valley can now be made through the CFKR

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Grace (left), a caribou that was born in a maternal pen north of Revelstoke, is alive and well said the province. It appears she even has a calf. Maternity pens aim to increase caribou calf survival by protecting them from predation until they are older and less vulnerable. (Contributed)
For the first time in years, caribou numbers increasing near Revelstoke

North herd growing but south herd still concerning

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

Kelowna General Hospital. (File photo)
COVID-19 outbreak at Kelowna General Hospital declared over

Three people tested positive for the virus — two patients and one staff — one of whom died

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

Most Read