Current:Home > StocksEl Salvador Just Became The First Country To Accept Bitcoin As Legal Tender-InfoLens
El Salvador Just Became The First Country To Accept Bitcoin As Legal Tender
View Date:2024-12-23 10:57:35
El Salvador has become the first country in the world to make the cryptocurrency Bitcoin legal tender.
Advocates of the digital currency, including the country's president, Nayib Bukele, say the policy that took effect Tuesday morning was historic.
But the first few hours of Bitcoin's official status in El Salvador were marred by technological hiccups as the country opened its digital wallet app to residents and consumers for the first time.
Why El Salvador is choosing Bitcoin
Bukele previously suggested that legalizing Bitcoin would spur investment in the country and help the roughly 70% of Salvadorans who don't have access to "traditional financial services."
"We must break with the paradigms of the past," he said Monday in a statement translated from Spanish. "El Salvador has the right to advance toward the first world."
Bukele also has said that using Bitcoin would be an effective way to transfer the billions of dollars in remittances that Salvadorans living outside the country send back to their homeland each year, the Associated Press reported.
El Salvador's government holds 550 Bitcoin, Bukele said, which is equivalent to about $26 million.
The country's other currency is the U.S. dollar.
The rollout included success stories and tech hang-ups
Among the stories on social media Tuesday were those of people successfully using Bitcoin to pay for goods.
"Just walked into a McDonald's in San Salvador to see if I could pay for my breakfast with bitcoin, tbh fully expecting to be told no," Aaron van Wirdum said in a tweet that was retweeted by Bukele.
"But low and behold, they printed a ticket with QR that took me to a webpage with Lightning invoice, and now I'm enjoying my desayuno traditional!" he added.
Still, there were some minor hiccups during the official introduction of the new currency.
After the launch Tuesday morning, officials took down Chivo, El Salvador's virtual Bitcoin wallet, so they could attempt to increase the capacity of the image capture servers.
Opposition to Bitcoin ... and to Bukele
While much has been made across the world of El Salvador's historic economic move, excitement within the country may be much lower.
A recent poll by the Universidad Centroamericana José Simeón Cañas, a Jesuit college based in El Salvador, found that 67.9% of people disagreed with the decision to make Bitcoin legal tender. Many respondents said they didn't know how to use the cryptocurrency, the poll found.
Critics of the experiment — including some of Bukele's political opponents — wore T-shirts to parliament on Tuesday to express their opposition to the new Bitcoin law.
But it's not just the economy. Bukele's government is also facing pushback from the international community over a recent court decision that was widely seen as unconstitutional.
On Friday, judges appointed by El Salvador's parliament, which is dominated by Bukele's party, concluded that the president could run for a second term in 2024, according to CNN. Experts say that is barred by the country's constitution.
The U.S. Embassy in El Salvador said in a statement that the decision "undermines democracy" and "further erodes El Salvador's international image as a democratic and trustworthy partner in the region."
veryGood! (58)
Related
- Inflation ticked up in October, CPI report shows. What happens next with interest rates?
- Catfish Host Nev Schulman Shares He Broke His Neck in a Bike Accident
- 'Snow White' trailer unveils Gal Gadot's Evil Queen; Lindsay Lohan is 'Freakier'
- A'ja Wilson dragged US women's basketball to Olympic gold in an ugly win over France
- LSU student arrested over threats to governor who wanted a tiger at college football games
- In 60-year-old Tim Walz, Kamala Harris found a partner to advocate for reproductive rights
- Time to start house hunting? Lower mortgage rates could save you hundreds
- Best shooter ever: Steph Curry's spectacular finish secures Team USA another gold
- In an AP interview, the next Los Angeles DA says he’ll go after low-level nonviolent crimes
- USWNT wins its fifth Olympic gold medal in women’s soccer with a 1-0 victory over Brazil in final
Ranking
- GM recalls 460k cars for rear wheel lock-up: Affected models include Chevrolet, GMC, Cadillac
- 'Catfish' host Nev Schulman breaks neck in bike accident: 'I'm lucky to be here'
- Disney's Goofy Character Isn't Actually a Dog—Or a Cow
- Jordan Chiles Stripped of Bronze Medal in 2024 Olympics Floor Exercise
- Craig Melvin replacing Hoda Kotb as 'Today' show co-anchor with Savannah Guthrie
- Pacific Northwest tribes are battered by climate change but fight to get money meant to help them
- Zak Williams reflects on dad Robin Williams: 'He was a big kid at heart'
- Jordan Chiles May Keep Olympic Bronze Medal After All as USA Gymnastics Submits New Evidence to Court
Recommendation
-
New Mexico secretary of state says she’s experiencing harassment after the election
-
When you 'stop running from it' and know you’ve outgrown your friend group
-
Horoscopes Today, August 10, 2024
-
A'ja Wilson dragged US women's basketball to Olympic gold in an ugly win over France
-
She's a trans actress and 'a warrior.' Now, this 'Emilia Pérez' star could make history.
-
Steph Curry, Kevin Durant, LeBron James star in USA basketball Olympic gold medal win
-
Sabrina Carpenter Narrowly Avoids Being Hit by Firework During San Francisco Concert
-
US surgeon general was warned by his mom to avoid politics, but he jumped into the fray anyway