UPDATE: The proposed legislation has passed and Bitcoin is on its way to becoming legal tender in El Salvador.
In an announcement over the weekend, El Salvador’s president, Nayib Bukele, said he would send a bill to the Legislative Assembly to make Bitcoin a legal tender in the Central American country.
Currently, the U.S. dollar is the only legal tender in the nation but things will soon change if the Salvadorean president has his way. President Bukele said that he sees the additional tender as a way to create jobs and include many of those who operate outside of the formal economy.
The majority of Salvadoreans do not have a bank account and the inclusion of the cryptocurrency as a legal tender could be a way to allow family members, residing in the U.S., to avoid losing a percentage of remittances to intermediaries when sending money home. The president’s party hold a super majority in congress and his legislation is expected to be pushed through.