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Technology

In that country the president himself is introducing bitcoin

Prothom-alo desk

Published: 06 June 2021, 14:30

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The banner of this El Salvador beach shop reads, "We accept Bitcoin."

The banner of this El Salvador beach shop reads, "We accept Bitcoin."Reuters

In the Central American country of El Salvador, people trade in US dollars. At present that is the only common currency there. However, the country's president has proposed the introduction of Bitcoin as the second legal tender. And if implemented, El Salvador would make history as the world's first independent state to introduce the digital currency Bitcoin.


President Naib Bukele made the announcement at the 'Bitcoin 2021' conference. He wants to build his country's modern financial infrastructure through bitcoin by signing a contract with digital wallet service provider Strike. "We will raise a bill in Congress next week to introduce Bitcoin as a legal tender," the president said in the video.


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The conference was held on June 4 and 5 in Miami, USA. That is said to be the biggest conference in the short history of Bitcoin.


At the same conference, Jack Mullers, founder of Strike, a digital currency retention service, said, "Bitcoin reserves will provide a way for developing economies to cope with the impact of inflation."


El Salvador's President Naib Buckley

El Salvador's President Naib BuckleyReuters

Most people in El Salvador transact in cash. About 80 percent of the people there do not have a bank account or credit card. 20 percent of the country's GDP comes from remittances sent by expatriates. Bringing money from abroad costs up to 10 percent. And it can take up to a few days to get the money.


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The problem, CNBC reports, is that it is difficult to have full confidence in Bitcoin as there are no assets against it. There is no central control system behind this. Rareness plays a big role in its price fluctuations. Because the total amount of bitcoin is 2 crore 10 lakhs.


It is unknown at this time what he will do after leaving the post. However, CNBC has learned that there is a plan to form a new financial system of the country by forming a team with some of the leading people in this sector.


In El Salvador's legislature, Buccaneer's New Idea Party is in control. So it can be assumed that his bill will be passed.


The most popular digital currency is Bitcoin. Symbolic image

The most popular digital currency is Bitcoin. Symbolic imageReuters

This is not the first big initiative of El Salvador with Bitcoin. Strike launched the mobile phone app there last March. It quickly rose to the list of the most