El Salvador has become the first country to accept Bitcoin as legal tender in a move that has got the nation and the world debating the opportunities and dangers of cryptocurrency.
From today, businesses will be obliged where possible to accept the controversial digital coins as payment.
Millions of people are expected to download the government’s new digital wallet app which gives away $30 (£22) in Bitcoin to every citizen.
Bitcoin fans around the world have been buying $30 worth of the digital coins as a show of support and to help boost the value of the volatile currency.
The value of Bitcoin has risen and fallen dramatically in the last year.
It went from about $10,000 for a single coin in September 2020 to a high of $63,000 in April 2021 then falling to $30,000 in July this year.
The value of Bitcoin has risen in recent weeks to $51,000 which some analysts have linked to the El Salvador news.
On Monday, a viral post on the three-million-strong Bitcoin page on Reddit read: “So… We all buying $30 worth of Bitcoin on Tuesday?”
However, a survey by the Central American University (UCA) found that only 4.8% of the 1,281 people who took part understood what Bitcoin was and how it was used.
More than 68% of those questioned said they disagreed with using cryptocurrency as a legal tender.
More than 200 new cash machines are being installed across the country to enable dollars to be converted into Bitcoin.
Recent protests in the capital, San Salvador, have demonstrated a lack of confidence among citizens who feel the measure is a distraction from the government’s controversial rule.
Source-BBC
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