First-ever country to officially adopt Bitcoin as its national currency
In recent years, cryptocurrency has become so popular that El Salvador has just become the first country in the world to adopt Bitcoin as its official currency. The country will continue to use its official U.S. dollar currency and Bitcoin. At 3 minutes before midnight, the president of the country posted an unexpected move about “making history” on Twitter.
El Salvador’s President Nayib Bukele confirmed that the country bought 400 bitcoins, which is equivalent to approximately US$20.9 million at today’s transaction prices. Supporters worry that it will be cheaper for immigrants to send money back to El Salvador, and some hope that it will improve citizens’ access to financial services. Jack Mallers, Strike’s chief executive, helped create the new law and its logistics. He told CNN that more than 70% of the country’s “active population” currently has no bank accounts, which means that the adoption of Bitcoin as an official currency may undergo some major changes in the near future.
This is the first country to officially adopt Bitcoin as its national currency.
However, not everyone is happy with this change. Bitcoin hit an all-time high of $60,000 in April but collapsed and devalued by half later in the summer. Many people worry about using such a volatile currency, and many people worry that it will do more harm than good to the country and its citizens.
With the launch of the new Bitcoin, people will be able to pay taxes, pay in stores, display prices in new digital currencies, and more. Any funds converted into currency are not subject to capital gains tax. The country will install hundreds of new ATM machines to support the new currency and will also launch its own digital wallet called “Chivo,” rewarding users with $30 to encourage adoption. El Salvador is also the first country to officially hold part of its Bitcoin reserves.
