Nayib Bukele, the president of a central american country El Salvador spoke at the Bitcoin 2021 conference in Miami via a pre-recorded video and announced his plans to submit a bill to his country's congress next week that will recognize cryptocurrencies and classify Bitcoin as legal tender.
In the short term, this will generate jobs and help provide financial inclusion to thousands outside the formal economy. And in the medium and long term, we hope that this decision can help us push humanity, at least a tiny bit into the right direction.
Bukele told that El Salvador had formed a relationship with the Lightning Network payments platform Strike. Jack Mallers, founder of Strike was hosting the presentation at the Bitcoin 2021 conference and speaking to the audience as the recorded video played on the stage. Mallers revealed that he had been working closely with Burkele to make this historical moment happen and help the cryptocurrency community gain more traction.
Bukele referred to the current global trends in fiscal policy and claimed that central banks have been increasingly taking actions that may cause harm to the economic stability of El Salvador. He further stated that in order to mitigate this negative impact from central banks, it was becoming necessary to authorize the circulation of a digital currency with the supply that cannot be controlled by any central bank.
Mallers said on stage during the conference that he himself had lived in El Salvador for over three months and had been completely shocked to see that over 70% of the population did not even have a bank account, and that 20% of the country's GDP came from remittances sent by migrants to their family members living in the nation.
They asked me to help write a plan and that they view bitcoin as a world-class currency.
They said we needed to put together a bitcoin plan to help these people.
Mallers continued by showing his belief that if the legislation was passed in El Salvador to make bitcoin legal tender, it would be the first step towards the acknowledgement of a truly global currency that was accepted anywhere in the entire world. He also framed Bukele's forthcoming legislation as the next crucial step in a partnership between Strike and El Salvador which would help the company in opening an office in the country.
He said that the announcement will be a "shot heard 'round the world for bitcoin". He continued by referring to Bitcoin as both the greatest reserve asset ever created and a superior monetary network than any existing banking solution. Holding bitcoin provides a way to protect developing economies from potential shocks of fiat currency inflation.
As can be seen in the video, the announcement by Bukele to submit the bill for approval next week led to a wild rush of cheering and excitement from the attendees at the conference. The news of the announcement also went viral in the following hours accompanied by a very strong support by the entire crypto community via social media and forums.