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| Bitcoin: El Salvador plans to make cryptocurrency legal tender | Bitcoin: El Salvador plans to make cryptocurrency legal tender |
| (5 months later) | |
| President Nayib Bukele says it will make it easier for people to send payments home | President Nayib Bukele says it will make it easier for people to send payments home |
| El Salvador's president says he will make the Bitcoin cryptocurrency legal tender in the country. | El Salvador's president says he will make the Bitcoin cryptocurrency legal tender in the country. |
| If his plan is backed by congress, the Central American country would be first in the world to formally adopt the digital currency. | If his plan is backed by congress, the Central American country would be first in the world to formally adopt the digital currency. |
| It would be used alongside the US dollar, El Salvador's official currency. | It would be used alongside the US dollar, El Salvador's official currency. |
| President Nayib Bukele says Bitcoin will make it easier for Salvadorans living abroad to send payments home. | President Nayib Bukele says Bitcoin will make it easier for Salvadorans living abroad to send payments home. |
| "In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Mr Bukele told a Bitcoin conference in Florida, adding that it could also boost investment to the country. | "In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy," Mr Bukele told a Bitcoin conference in Florida, adding that it could also boost investment to the country. |
| #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. | #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. |
| He said he would send the legislation to congress next week. | He said he would send the legislation to congress next week. |
| Should it pass, the move would open up financial services to the 70% of Salvadorans who do not have bank accounts, the president said. | Should it pass, the move would open up financial services to the 70% of Salvadorans who do not have bank accounts, the president said. |
| Family help that's bigger than aid budgets | Family help that's bigger than aid budgets |
| What is Bitcoin? | What is Bitcoin? |
| El Salvador country profile | El Salvador country profile |
| El Salvador's economy relies heavily on remittances, or money sent home from abroad, which make up around 20% of the country's gross domestic product (GDP). | El Salvador's economy relies heavily on remittances, or money sent home from abroad, which make up around 20% of the country's gross domestic product (GDP). |
| More than two million Salvadorans live outside the country, but they continue to keep close ties to their place of birth, sending back more than $4bn (£2.9bn) each year. | More than two million Salvadorans live outside the country, but they continue to keep close ties to their place of birth, sending back more than $4bn (£2.9bn) each year. |
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| Bitcoin explained: How do crypto-currencies work? | Bitcoin explained: How do crypto-currencies work? |
| Current services can charge fees for such transfers, which can take days to arrive and sometimes need to be picked up in person, according to the announcement. | Current services can charge fees for such transfers, which can take days to arrive and sometimes need to be picked up in person, according to the announcement. |
| "This will improve lives and the future of millions," Mr Bukele said. | "This will improve lives and the future of millions," Mr Bukele said. |
| He did not give more details about how the policy would work. | He did not give more details about how the policy would work. |
| Bitcoin, a virtual asset with no direct connection to the real economy, has seen large fluctuations in value over the years. | Bitcoin, a virtual asset with no direct connection to the real economy, has seen large fluctuations in value over the years. |
| Most of the world's central banks are looking into the possibility of creating their own digital currencies. In April, the Bank of England announced it was looking into creating a digital money that would exist alongside cash and bank deposits. | Most of the world's central banks are looking into the possibility of creating their own digital currencies. In April, the Bank of England announced it was looking into creating a digital money that would exist alongside cash and bank deposits. |
| 'PR value' | 'PR value' |
| Strike, a mobile payments app set up in El Salvador, is working on the introduction of Bitcoin in the country, Reuters reports. | Strike, a mobile payments app set up in El Salvador, is working on the introduction of Bitcoin in the country, Reuters reports. |
| "Adopting a natively digital currency as legal tender provides El Salvador the most secure, efficient and globally integrated open payments network in the world," founder Jack Mallers said. | "Adopting a natively digital currency as legal tender provides El Salvador the most secure, efficient and globally integrated open payments network in the world," founder Jack Mallers said. |
| Rohan Grey, an expert with the Digital Currency Global Initiative, told BBC World Mr Bukele was "a young president trying to capitalise on a popular image". | Rohan Grey, an expert with the Digital Currency Global Initiative, told BBC World Mr Bukele was "a young president trying to capitalise on a popular image". |
| "There is a lot of PR value in announcing something like this even if you haven't worked out all the details," he said. | "There is a lot of PR value in announcing something like this even if you haven't worked out all the details," he said. |
| Mr Grey cautioned more generally that a country adopting a cryptocurrency as legal tender would give considerable control "to a network that isn't stable, doesn't have accountable actors and doesn't have track record of providing the kind of price stability and liquidity that a currency is supposed to provide". | Mr Grey cautioned more generally that a country adopting a cryptocurrency as legal tender would give considerable control "to a network that isn't stable, doesn't have accountable actors and doesn't have track record of providing the kind of price stability and liquidity that a currency is supposed to provide". |
| A unique and bold step | A unique and bold step |
| The plan announced by President Nayib Bukele would make the small Central American nation the first in the world to adopt the digital currency, Bitcoin, as legal tender alongside the dollar. | The plan announced by President Nayib Bukele would make the small Central American nation the first in the world to adopt the digital currency, Bitcoin, as legal tender alongside the dollar. |
| It would be a unique and bold step, the first by a sovereign country, and that may well be part of the attraction for Mr Bukele, a young, media-savvy and very popular leader who worries Washington over his increasingly autocratic tendencies. | It would be a unique and bold step, the first by a sovereign country, and that may well be part of the attraction for Mr Bukele, a young, media-savvy and very popular leader who worries Washington over his increasingly autocratic tendencies. |
| There are still many questions over how the digital currency would become the country's legal tender - a major overhaul of El Salvador's financial infrastructure would be needed with Bitcoin at its heart. | There are still many questions over how the digital currency would become the country's legal tender - a major overhaul of El Salvador's financial infrastructure would be needed with Bitcoin at its heart. |
| But, in essence, it appears that is what Mr Bukele is proposing. | But, in essence, it appears that is what Mr Bukele is proposing. |
| Much of El Salvador's developing economy is based on remittances from abroad and the move to a digital currency may allow family members to avoid the costly fees involved in sending money home each month. | Much of El Salvador's developing economy is based on remittances from abroad and the move to a digital currency may allow family members to avoid the costly fees involved in sending money home each month. |
| Either way, it is a move which is likely to bolster Bitcoin's image as the "currency of the future" and President Bukele's standing among his supporters as an innovator. | Either way, it is a move which is likely to bolster Bitcoin's image as the "currency of the future" and President Bukele's standing among his supporters as an innovator. |