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El Salvador Is the First Country in the World Where Bitcoin Is the Official Currency

El Salvador Is the First Country in the World Where Bitcoin Is the Official Currency

The small Central American state of El Salvador has recognized bitcoin as legal tender for the first time in the world. In accordance with the law, which came into force on September 7, all businesses and organizations are required to accept cryptocurrency to pay for goods and services, along with the US dollar.

Since 2001, the only currency in the country has been the US dollar. Now even small shops will accept bitcoin. On this occasion, 200 ATMs with the option of converting digital gold will be installed in El Salvador. A July poll showed that only 20% of the country's residents approved the bitcoin legalization initiative. However, financiers doubt it will end well.

The charismatic and popular 40-year-old Salvadorian President Nayib Bukele, who spearheaded the law, says the measure will drive economic growth and make it easier and cheaper to transfer funds back home from Salvadorans abroad. According to him, about 50 thousand Salvadorans are already using bitcoin.

However, economists call the introduction of bitcoin in El Salvador a risky experiment, noting that a currency with such an unstable exchange rate can only harm the already weak Salvadoran economy.

Immediately after that, Bitcoin fell by 10%, namely, the currency rate dropped to 46.3 thousand dollars.

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