El Salvador first to accept bitcoin as official currency

El Salvador on Tuesday became the first country to adopt bitcoin as legal tender, a real-world experiment proponents say will lower commission costs for billions of dollars sent from abroad but which critics warned may fuel money laundering.

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

President Nayib Bukele, who has pushed for adopting the cryptocurrency, says it will help Salvadorans save about $400 million the government calculates is spent annually on commissions for remittances.

The 40-year-old president is popular with the public but has been accused of eroding democracy, including by the US Biden administration.

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