At this week's Miami Bitcoin conference a recording of Nayib Bukele, the president of El Salvador, was played. He has proclaimed a legislative proposal is being submitted that will make Bitcoin a completely legal form of money in the country. If the bill were to pass, this would make El Salvador the first country in the world to regard bitcoin as both a reserve asset and a legal tender. The wait might not be long either, Bukele claims he’ll be sending the bill to Congress next week!
"We hope that this decision will be just the beginning in providing a space where some of the leading innovators can reimagine the future of finance, potentially helping billions around the world."
- Nayib Bukele
The central bank of El Salvador’s adopting bitcoin as part of its reserves is a massive move, allowing citizens to transact with the BTC as legal currency is incredibly bullish and yet another regulatory hurdle for the world's top market cap cryptocurrency. A partnership with the digital wallet company Strike has been formed with the country of El Salvador to build the necessary financial infrastructure to sufficiently support blockchain technologies.
Some powerful interests will try to make this historical #Bitcoin move fail.— Nayib Bukele 🇸🇻 (@nayibbukele) June 6, 2021
They know what it means if it succeeds.
Jack Mallers, the founder and CEO of Strike, suggests that adding bitcoin to their reserves in support of the country of El Salvador will be nothing short of revolutionary. “This is the shot heard 'round the world for Bitcoin. What's transformative here is that bitcoin is both the greatest reserve asset ever created and a superior monetary network. Holding bitcoin provides a way to protect developing economies from potential shocks of fiat currency inflation.” Strangely, Jack might be having a bit of tough luck at the moment…
This isn’t the only significant and positive legal news for BTC coming this week either. Texas Governor Greg Abbot announced the signing of a law creating a legal framework for crypto investments throughout the state of Texas. There are many other U.S. states currently debating crypto legislation as well who might feel inclined to quickly follow Texas’ lead.
Blockchain is a booming industry that Texas needs to be involved in.— Greg Abbott (@GregAbbott_TX) June 5, 2021
I just signed a law for Texas to create a master plan for expanding the blockchain industry in Texas.#Blockchain #Bitcoin#cryptocurrency pic.twitter.com/bMKXxxYooe
In another forward looking announcement out of this week's Miami Bitcoin conference. Bitcoin infrastructure startup Blockstream and the online payment service Square have announced a partnership to build one in the U.S. based on renewable energy. Company leaders Adam Back and Jack Dorsey have agreed to create an open-source Bitcoin mining facility in the United States driven by solar energy.
.@Square intends to invest $5M in the facility, with @Blockstream providing infrastructure and expertise to build and manage the project. The facility will be a proof-of-concept for a 100% renewable energy #Bitcoin mine at scale.— Blockstream (@Blockstream) June 5, 2021
Energy consumption of Proof of Work cryptocurrencies like Bitcoin in particular having long been a concern worth addressing. Now as mainstream and institutional adoption has taken place the matter is being approached directly and practically with an eye on the incentives. There is no reason not to focus on the obvious abbundance of renewable energy now available to address the heightening BTC energy demands. Not to mention the potential financial savings to be realized by utilizing more forward looking energy solutions. Renewable energy is something being sought after across so many industries, initiatives like this one which plan to focus on the sharing of data gathered and findings made regarding the successful impact the undertaking has had. We'll all be interested to see how effective such an operation can be, and how many others will respond in kind.