Bitcoin becomes legal tender in El Salvador

Observers warn move could further destabilise the fragile Salvadoran economy

El Salvador flag and bitcoin

El Salvador’s bitcoin law, which makes the private cryptocurrency legal tender in the country, took effect today (September 7). 

Some argue the measure will imperil El Salvador’s external financial relations and may also impede negotiations with the International Monetary Fund for a $1.3 billion loan.

Nayib Bukele, president of El Salvador, announced on June 5 that the Central American country would make bitcoin legal tender, a world first. The legislature, where Bukele’s New Ideas party

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