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El Salvador leads globally in adopting bitcoin as its official currency

El Salvador has recently adopted bitcoin as a legal trade, and it is leading globally with its move.

Bitcoin
Photo By "CNBC TV18"

On Tuesday, El Salvador became the first country to adopt bitcoin as its legal tender. It is a real-world experiment that may lower the commission costs for billions of dollars sent from other countries. But critics have warned that it can increase money laundering in the country.

This change means that businesses should accept the payment through bitcoin besides the U.S dollar. President Nayib Bukele has pushed the adoption of cryptocurrency. He said that it would help Salvadorians to save $400 million that the government spends annually from remittances.

The president is quite popular among the public. But he has been accused of eroding democracy. Doubters say that bitcoin can increase the regulatory and financial risk for the nation. Polls show that Salvadorians are worried about the volatility of the cryptos.

To encourage the public, Bukele promised $30 in bitcoin if they are signing up for a government digital wallet. Ahead of this announcement El Salvador has bought 400 bitcoins. It will help to drive the price of the currency above$52000 for the first time after May.

On Tuesday, the wallet had not appeared on Google, Apple Inc, and Huawei’s app downloading platforms. Bukele has posted red-faced emoticons while posting about it on Twitter.

Some citizens are optimistic about this launch. Bitcoin Beach, or the town of El Zonte, is aiming to become one of the first bitcoin economies in the world. In the launch, the government has installed ATMs that will allow the conversion of bitcoin into dollars.

Bukele on Monday asked for patience from its citizens. He said, “Like all innovations, El Salvador’s bitcoin process has a learning curve. Every road to the future is like this, and not everything will be achieved in a day or a month.”

Cryptos are very volatile that have risen to $ 64000 while at the same time went low up to $30000 after a few months. This move of making bitcoin a legal tender has muddied this outlook.

However, bitcoin does not seem to shy away from the controversies. He tweeted, “We must break the paradigms of the past. El Salvador has the right to advance towards the first world.”

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