“For the first time in history, all eyes will be on El Salvador,” President Nayib Bukele tweeted Monday. He immediately announced that the country had purchased its first 200 bitcoins.
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According to the head of state and his government, the bitcoin will enable Salvadorans to save 400 million dollars (about 337 million euros) in bank costs when sending money. In El Salvador’s economy, which runs on the US dollar, remittances by Salvadorans from abroad are a major support, accounting for 22 percent of gross domestic product (GDP).
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However, two-thirds of Salvadorans in two different polls were in favor of keeping only the US dollar as legal tender. Economists and financial institutions such as the World Bank and the International Monetary Fund (IMF) are also skeptical about the measure. They are particularly concerned about the high volatility of the cryptocurrency.
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