El Salvador can be the first country to accept Bitcoin as legal offer

El Salvador could become the first country to officially accept well-known cryptocurrence. According to CNBC, President Nayib Bukele said he would propose a bill that appeals legal Bitcoin alongside the US dollar. The government will balance with a digital portfolio closure to create a financial framework around the digital monetary format.

The founder of the strike, Jack Maller, claimed Bitcoin would help countries like El Salvador protect against “potential shocks” inflation for traditional currencies.

The bill is likely to pass when the Bukele part controls the Legislative Assembly of El Salvador.

This movement might not be as daring as it sounds. CNBC notes that migrant money transfers account for about 20% of El Salvador’s gross domestic product and often include high transaction costs as well as long delays. Bitcoin and other cryptocurrences could make these transfers more convenient and immediate. Residents certainly like digital payments – the application of Strike has become one of the country’s most popular applications when launched in March.

It always represents an important gamble, however. Bitcoin is not supported by a stable resource such as gold or the government of a great country. Like other cryptocurrences, it is very volatile – huge tips and drops are often linked to events that would be considered as minors elsewhere. A counting resident on a Bitcoin transfer to join the two ends could be devastated if the value falls with little warning.

Simply launch Crypto payments is not a guarantee of success. Venezuela has not agreed on its petro currency, although it is mainly intended for an end of international sanctions. It is also attached to oil, which has had its own volatility thanks to the Pandemic of Covid-19.

If the evolution of El Salvador succeeds, however, it could give Bitcoin and other cryptocurrences another foot in the traditional financial world by doing business with a whole country. Do not expect other countries to harmonize Bitcoin. The US Federal Reserve, for example, is looking for its own digital currency. Salvadorans could still have to deal with exchange rates and other hassles, even if a fully digital currency would eliminate some of their other challenges.