El Salvador’s President Nayib Bukele’s proposal to adopt bitcoin as legal tender does not mean that the dollar will no longer be used in the Central American country’s economy.
The statement corresponds to the Secretary of Commerce and Investment of that nation, Miguel Kattán, in statements collected by the El Mundo newspaper of El Salvador. The official made this assertion as a way to reassure the population, fearful of a complete turn to a bitcoin standard.
The Secretary of Commerce and Investment clarified in a press conference on June 7, 2021, that cryptocurrency will not replace the dollar, but will become a new means of payment and that this does not imply a de-dollarization of the economy, as he reiterated.
Its relationship is to the dollar. It will continue to be the legal tender in El Salvador, but operations can be done with bitcoin, obviously correlated with its value in dollars.
Miguel Kattán, Secretary of Commerce of El Salvador.
Kattán added that the project that President Bukele will send to the Legislative Assembly this week remains a secret to give bitcoin legal tender status. However, he announced that this regulation would allow the creation of a bitcoin opt-in economy (“added to the list”), where the dollar will continue to predominate in the economy of his country and bitcoin joins the list of means of payment.
In this regard, Kattán clarified: «what the law is going to say at the end of the day is that you can pay – if the one who is collecting accepts the bitcoin and the one who is paying wants to do it with bitcoin-, there is no difference of what we have today. Its relationship will always be with the dollar.
Miguel Kattán, Secretary of Commerce and Investment, said that the bill that would recognize bitcoin as legal tender in El Salvador would also come with protections against money laundering. Source: ElMundoSV.
El Salvador’s economy will never have prices in satoshis
The Secretary of Commerce offered these statements during a ceremony held at the Central Reserve Bank (BCR). The official stated that The predictions made on social networks will not be fulfilled in that the goods will have prices in satoshis.
In this event Kattán questioned the confusion generated in the population by the transaction of the basic basket products in bitcoin. “Someone said yesterday, and I was laughing, how are you going to pay 0.00000001 bitcoin in tomato? How will the transaction be? What you are going to pay is the USD 0.20 that the tomato is worth. Point. That is what the person will receive $ 0.20 in bitcoin ».
During his speech, the official reiterated that the bill that would recognize bitcoin as legal tender in El Salvador, would come with money laundering protections, He said.
Kattán said that bitcoin presents El Salvador with a growth opportunity. He pointed to the success of a community known as “Bitcoin Beach” where hotels, shops, restaurants, and even the water utility company accept bitcoin through the low-cost Lightning network.
“There is no difference from what we have today,” said Kattán. For consumers and merchants, “their relationship will always be to the dollar.”
The announcement by the President of El Salvador, Nayib Bukele, to adopt bitcoin to make transactions in the economy of his country shows that the cryptocurrency continues to be the most popular in the ecosystem.
The bitcoin adoption project would have an “express” route in the El Salvador congress. A group of deputies has already spoken in favor of the initiativeOthers have even changed their Twitter profile to add an image with laser eyes or “laser eyes”, a bitcoin trend in support of BTC, CriptoNoticias reported on June 7, 2021.