Bukele proposes to convert bitcoin into El Salvador currency to facilitate remittances

The president of El Salvador, Nayib Bukele, will propose to Congress to convert bitcoin, the most famous and most valuable cryptocurrency on the market, into a legal tender in the Central American country, as announced in a recorded message that was shown on Saturday at a cryptocurrency conference in Miami.

The 39-year-old president, who maintains a popularity rate above 90% and has made the social network Twitter his preferred communication tool, described it as an idea that could contribute to the progress of El Salvador.

[Nayib Bukele celebrates two years in the Government with a high popularity, but involved in criticism]

"Next week I will send to Congress a law that will convert bitcoin into legal tender in El Salvador,"

said Bukele, "in the short term, this will create jobs and help promote financial inclusion for thousands of people outside the country. formal economy, in the medium and long term we hope that this small decision can help us lead humanity at least a little in the right direction. "

The official currency in El Salvador is the US dollar.

Around a quarter of Salvadorans 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 has an absolute majority in the new Congress, formed on May 1, which makes the approval of any legislative proposal from the president very likely.

No original details of the plan were released.

But in subsequent posts on Twitter, Bukele indicated that bitcoin would be 

"the fastest way to transfer $ 6 billion a year in remittances

.

"

Much of those transfers, he noted, were lost to intermediaries, and more than a million low-income families could benefit from the change.

Salvadoran President Nayib Bukele speaks at a press conference in San Salvador, El Salvador, on Friday, June 4, 2021. EFE / Rodrigo Sura

[Remains of 40 people found in the 'house of terror' of a former police officer in El Salvador: "The axis of this investigation is sexual violence"]

He also stated that 70% of the population of El Salvador does not have a bank account and works in the informal economy.

Cryptocurrencies could improve financial inclusion, he noted.

Taking advantage of his high popularity and the good result of his party in the February 28 elections, Bukele has concentrated power.

The vast majority of his training in Congress allowed him to dismiss magistrates of the Constitutional Chamber of the Supreme Court of Justice on May 1, as well as the attorney general.

Magistrates and the attorney general had been critical of some of Bukele's most drastic measures during the pandemic, such as a mandatory confinement order and the creation of containment centers for those detained for breaching quarantine.

The US will stop sending funds to the Government of El Salvador and will allocate it to civil organizations

May 22, 2021

[What is the secret of Bukele's success?

Strong hand and repression, according to experts]

The president had a positive relationship with former President Donald Trump, but has clashed more with the current government of Joe Biden.

The White House special envoy to the Northern Triangle, Ricardo Zúñiga, said last month during a visit to El Salvador that the United States would like El Salvador to reverse the removal of judges and the attorney general.

Bukele ruled out that possibility.

The concentration of power during his term, the attacks on his detractors and his clear rejection of controls over his presidency have raised concerns about the future of El Salvador.

[A judge ordered the release of Sara Rogel, a Salvadoran woman who was accused of having an abortion.

But still prey]

However, Bukele enjoys wide support due in part to the fact that the traditional parties that ruled the country for 30 years did not improve people's lives, as well as the president's ability to offer short-term benefits.

Bukele has been praised for his aggressive strategy to obtain COVID-19 vaccines and for managing an efficient vaccination program, much more successful than that of the country's neighbors.