The El Salvador’s Commerce and Investment Secretary, Miguel Kattan has said the proposed embrace of bitcoin (BTC, -11.76%) would not end dollarization in the Central American economy, maintaining that dollar is still very much recognised.
In a remarks covered by local newspaper, the secretary said “The U.S dollar will continue to be the legal tender in El Salvador. Although, operations can be done with bitcoin – obviously related to its value in dollars.”
Providing the most in-depth look yet at President Nayib Bukele’s plan to grant bitcoin legal tender status, Kattan said the still-under-wraps bill would create an opt-in bitcoin economy where the dollar, El Salvador’s official fiat since 2001, remains supreme.
It would be recalled that the president of El Salvador Nayib Bukele had earlier announced via a recorded program which was played at the just concluded bitcoin 2021 which took place in Miami, United State of America.
The president said he would be sending a bill to the congress to legalise or make bitcoin a legal tender in the state, a move that was generally acceptable by majority.
However contrary to some beliefs that the dollar which is primarily used may be scrapped because of bitcoin, the secretary of commerce and investment for the country debunked the rumour being speculated that the country that the dollar had been cancelled in the state.