The cryptocurrency has become legal tender despite protests across the country
Bitcoin has officially become a legal form of tender in El Salvador, as cryptocurrency continues to become more deeply intertwined in the modern world of business and finance.
The Central American country’s President, Nayib Bukele, passed the Bitcoin Law three months ago, with the rollout of the new monetary format expected to potentially save hundreds of millions.
Nevertheless, the highly volatile currency – which tanked after China’s crackdown on crypto and Elon Musk’s endorsement – has already sunk in value by over 16%.
Bitcoin plunges on the day El Salvador introduces the cryptocurrency as legal tender https://t.co/L5jjjFlr8L pic.twitter.com/CpXFAM0Y6g
— Bloomberg Markets (@markets) September 7, 2021
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The crypto move has already faced significant roadblocks and been met with resistance, as nearly half the population has no internet and many more only have sporadic access. And the poorest citizens are unlikely to have the technology to even access the cryptocurrency.
Bukele conceded on Twitter that the introduction of Bitcoin will come with a “learning curve”, but said the nation must “break the paradigms of the past”.
Como toda innovación, el proceso del #Bitcoin en El Salvador tiene una curva de aprendizaje. Todo camino hacia el futuro es asà y no se logrará todo en un dÃa, ni en un mes.
Pero debemos romper los paradigmas del pasado. El Salvador tiene derecho a avanzar hacia el primer mundo.
— Nayib Bukele ?? (@nayibbukele) September 6, 2021
The International Monetary Fund (IMF) said El Salvador’s move raised a number of macroeconomic, financial, and legal issues.
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