I haven't written about such a serious subject in a long time.However, this time I'm interested in El Salvador. I am curious about the courage of President Nayib Bukele who presented bitcoin as a legal tender to the legislature.
The President Of El Salvador , Nayib Bukele
It is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. The capital and largest city of El Salvador is San Salvador. In 2021, the country will have a population of approximately 6,825,935. https://en.wikipedia.org/wiki/El_Salvador
El Salvador is a country that does not have its own currency. Therefore, this country uses the dollar as the country's currency. To meet the dollar needs of its citizens, El Salvador earns dollars from export revenues. However, exports are lower than imports, so that the adequacy of the dollar can not be met by this method. Another source of dollars is remittances of dollars from migrant workers or residents of Salvadoran descent in the United States.
However, from these two sources, this country has not been able to meet the dollar needs of its citizens, so the state has to borrow from the financial market. El Salvador's debt has already exceeded 90% of GDP, so it is unlikely that the country will be able to afford any more debt.
President Bukele and his economic team are trying to find alternatives so that this country can survive and not fall into a financial crisis, especially during the COVID-19 crisis.
By any account, the Bukele administration rushed the bitcoin law through the legislature. From its initial presentation to its passage with 62 of 84 votes, the bill spent five hours in the Assembly, ending just after midnight on June 9.
After being accepted by the legislators, laws are made and immediately passed.