Last month, Bitcoin was introduced as legal tender in El Salvador, joining the US dollar.
The country’s new Bitcoin law, which will come into effect on September 7, will allow Salvadorans to use Bitcoin (BTC) as a currency to buy goods and services, as well as pay taxes and debts.
The President of El Salvador, Nayib Bukele, has stated that the adoption of Bitcoin will greatly benefit the 70% of the local population who do not have access to banking services. He also believes it will attract investment and create new jobs.
However, the Bitcoin law has raised several concerns. Skeptics say the cryptocurrency’s high volatility could pose a threat to the country’s financial stability. A very low internet penetration rate as well as a lack of education about Bitcoin and cryptocurrency in the country could also prevent Bitcoin from being widespread in El Salvador.
In order to promote the acceptance of Bitcoin, President Bukele has promised to build the necessary infrastructure. This includes 1,500 Bitcoin ATMs and a government wallet designed to guarantee instant conversion of Bitcoin to dollars.
Will that be enough for Bukele’s money experiment to be successful? To answer that question, Cointelegraph spoke to the people of El Salvador as well as to critics and supporters of the Bitcoin law.
Check out the full report from El Salvador on Cointelegraph’s YouTube channel and don’t forget to subscribe!