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(Image Credit: André François McKenzie, Unsplash)

Cryptocurrency has become ever so popular in recent years, and El Salvador has just become the first country in the world to adopt Bitcoin as an official currency. The country will keep using its official US dollar currency, alongside Bitcoin. At three minutes to midnight, the country’s president tweeted about “make history” with the unexpected move.

Nayib Bukele, President of El Salvador, has confirmed that the country purchased 400 Bitcoins, equivalent to around $20.9 million at today’s trading prices (via TheVerge). Supporters are worried that it will be cheaper for migrants to send money home to El Salvador, and there are also hopes it could improve the citizens’ access to financial services. Jack Mallers, CEO of Strike, helped to create the new law and the logistics of it. He told the CNN that over 70-percent of the country’s “active population” does not currently have a bank account, which means that adopting Bitcoin as a formal currency could have some significant changes in the near future.

However, not everyone is happy about the change. Bitcoin hit an all-time high of $60,000 back in April, only to crash and lose half of its value later in the summer. A lot of people are worried about using such a volatile currency, and many fear it could do more harm than good for the country and its citizens.

With the new Bitcoin introduction, people will be able to pay for taxes, pay at shops, display prices in the new digital currency, and much more. Any money that is exchanged into the currency will not be subject to capital gains tax. The country will have hundreds of new ATMs installed to support the new currency, and it will also launch its own digital wallet called “Chivo” that will reward users with $30 to encourage the adoption. El Salvador is also the first country to hold some of its reserves in Bitcoin officially.

Roland is a technology enthusiast and software engineer based in United Kingdom. He is also a content creator and writer, and is best known under the name “Techusiast”.

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