El Salvador on Tuesday became the first country to formally adopt the cryptocurrency bitcoin as legal tender, amid concerns over financial risks of the move.
El Salvador's President Nayib Bukele announced on Monday via social media that ahead of the formal adoption of the currency, his government had purchased 400 bitcoins, which were trading at around 21 million U.S. dollars.
The country's Legislative Assembly has approved legislation making the cryptocurrency bitcoin legal tender in the country on June 9, which would take effect on Sept. 7.
The change means bitcoin should be accepted as a way of payment in the country, while the U.S. dollar, which has been El Salvador's official currency since 2001, will remain legal tender.
Although the move delighted the currency's supporters, polls showed that Salvadorans are wary about the volatility of the cryptocurrency, and some criticized it for its potential for illegal use, such as laundering money or financing terrorism.
Meanwhile, international financial organizations, including the World Bank, International Monetary Fund, and Inter-American Development Bank, have expressed concerns about the Central American nation's bitcoin adoption.
Go to Forum >>0 Comment(s)