Cryptocurrencies have kept tumbling this week with several billion erased from the quality of tokens like Bitcoin. Investors globally are being affected by the downward curve, including the El Salvadoran government. The Central American country has added several millions of dollars to Bitcoin and declared it the official tender approximately nine months ago, inspiring individuals to use it for daily transactions.
From purchases ranging from trinkets to food to diesel and even landed property, one could buy almost anything in El Salvador with the digital coin. Purchasing goods with cryptocurrency from street sellers and major chains has been likened to a unique experience. From being dreamt up on internet forums as early as 2008, Bitcoin has come a long way.
The choice by President Nayib Bukele to make the cryptocurrency official tender means that in principle, it would now be accepted by all enterprises, together with the US currency.
The exact location where El Salvador’s Bitcoin movement started is a tiny surfing and fishing town on the south coast known as El Zonte.
The government has declared that it had no plans to mandate enterprises to accept Bitcoin, even though they should under El Salvador’s Bitcoin Law. So far it has restrained itself from offering incentives. Physical cash is still very much leading in the country, with over half of Salvadorians not having a bank account.
