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El Salvador became the first nation to accept Bitcoin as legal tender

2021.09.07

El Salvador will become the first country in the world to recognize bitcoin as legal tender. President Nayib Bukele says it will help Salvadorans save about $400 million the government calculates is spent annually on commissions for remittances.

The change means businesses should accept payment in bitcoin alongside the U.S. dollar, which has been El Salvador’s official currency since 2001 and will remain legal tender.

Doubters say bitcoin could increase regulatory and financial risks for the Central American nation, and polls show Salvadorans are wary of the volatility of the cryptocurrency, which can shed hundreds of dollars in value in a day.