When the tiny country’s plans first transpired earlier this year, many viewed the move as risky due to Bitcoin’s volatile nature that makes its value swing on…
Why it matters: El Salvador is officially the first country to adopt Bitcoin as an official currency, an event that is viewed with equal amounts of excitement and anxiety by Salvadorians, economists, and supporters of cryptocurrency. This is the boldest Bitcoin experiment to date, as its results could make or break the Central American nation’s financial recovery. When the tiny country’s plans first transpired earlier this year, many viewed the move as risky due to Bitcoin’s volatile nature that makes its value swing on seemingly benign comments or news that regulators around the world are coordinating a crackdown on cryptocurrencies and eroding their potential as a means to store value or perform financial transactions. Today, Bitcoin became an official currency for El Salvador alongside the US dollar, only a few months after adopting it as a legal tender.
