El Salvador is at again with its move to fully embrace Bitcoin. A few days ago, the country announced that it had made Bitcoin legal tender. It also announced it was moving towards facilitating Bitcoin mining through the use of renewable energy.
The nation looks set to make another first by becoming the first to pay salaries in Bitcoin. Its labor and social welfare minister has been quoted saying that the government was in discussions to start paying salaries using BTC.
While the labor minister did not give details on how this would be implemented, he revealed that talks are underway. The key ministries involved in the negotiations are the Ministry of Labor and Social Welfare, the Ministry of Finance, and the Ministry of Economy.
While details are not yet clear, there is a likelihood that it would involve a law change. That’s because, as per the country’s law, salaries in the country can only be paid in dollars. The dollar replaced the country’s local currency when Francisco Flores was president and has been like that ever since. Besides receiving salaries in Bitcoin, the proposal would also see citizens pay their taxes in crypto.
The move by El Salvador has drawn in the interest of the global crypto community. One of the people who has commented on the story is Cz_Binance, the CEO of Binance crypto exchange.
Cz_Binance said that the country should simply pay in Bitcoin since whoever gets paid can always convert the BTC into a stablecoin. This can help them avoid volatility.