Eyes on El Salvador

Keywords: Currency, Bitcoin, El salvador

El Salvador becomes the first country in the world to adopt Bitcoin as its official currency. This happened through a law promoted by the executive, headed by the president of that nation, Nayib Bukele. Although the president himself has said that it is optional; the law says that whoever offers bitcoin to buy a certain good or service, the seller is obliged to accept it as a means of payment.

The Central American country also accepts convertibility to dollars, making available a number of ATMs identified with its "Chivo" brand, which is the wallet in which the country keeps the digital currency. 

Amidst the discontent of the majority of the population for reasons related to the use of technology, the variation of prices of basic goods and the low level of banking usage, President Bukele is literally going to have a field day with the management of state resources.

Several countries are studying the acceptance of bitcoin as a means of payment. However, monetary experts say that it lacks the backing to have a reference value; and that its volatility can cause distortions in other sectors of the economy.