El Salvador’s Labor and Social Welfare Minister, Rolando Castro, revealed earlier that the country’s government is looking into the possibility of paying its workforce with Bitcoin (BTC) instead of cash. According to Castro in his guest appearance on the local radio station, 107.7 Fuego GMV, he has already discussed the particular notion with the Ministry of Economics and Ministry of Finance officials.
Notably, the Minister’s remarks came only a week after the country approved the crypto to become legal tender – implying that the particular development is but the start of the country’s aspirations for BTC.
That may be, it is still unclear whether El Salvador’s approval of BTC as legal tender aims to replace its current law framework or ultimately just build upon it. President Nayib Bukele’s draft of the upcoming law indicates that tax contributions can be paid in BTC. At the same time, the USD will be used as reference currency for accounting purposes.
It is now evident that El Salvador is putting all of its cards in BTC. While the pro-crypto community praises such commitment towards the cryptocurrency, global financial institutions have since raised their concerns regarding El Salvador’s supposed one-sighted approach in BTC.