El Salvador adopts Bitcoin
Finally, the long wait is over, El Salvador is officially the world-first adopter of Bitcoin. If you are planning a trip to El Salvador, you can now purchase with your Bitcoin. To reinforce their adoption of the parent cryptocurrency, the country bought 400 million Bitcoin which saw the price of the cryptocurrency surge above $52k.
Bitcoin Struggles
However, the adoption didn’t get the best start as the Salvadoran president, Nayib Bukele, had anticipated as it stumped into unexpected issues. There were protests by some mistrustful Salvadoran citizens, technological glitches, and the price of the cryptocurrency dip. The official Bitcoin app, Chivo, in the country was unavailable on many important OS including Apple and Huawei. After much push by the president, the app was made available by Huawei.
Companies start accepting Bitcoin
Many major companies in El Salvador including Starbucks Corp and McDonald’s Corp have started accepting Bitcoin for purchases. The Salvadoran president believes the adoption of Bitcoin will help the country save a projected $400 million a year on bank commissions and remittances. It will also make financial services available to citizens without a bank account.
El Salvador’s future
To combat the falling price of Bitcoin, the country made a further investment of 150 Bitcoin. Also, the president has promised each user $30 worth of Bitcoin to further push its adoption in the country.
Neglecting the obstacles the adoption has faced on just the first day, El Salvador has taken a step towards the modern financial world. Although, there are still worries that the adoption of Bitcoin in the country might promote money laundering since transaction records are beyond the reach of jurisdictions.