Citizens are able to pay for items from global companies such as Pizza Hut and Starbucks that operate in El Salvador as well as pay for bills for those involved with Claro, a mobile phone company.
Grocery shopping and trips to the hairdresser are payable by Bitcoin with El Salvador ramping up the number of businesses that can accept the crypto with the country fully embracing the digital economy for now and the future.
While some El Salvadorans have praised the forward-thinking nature of President Nayib Bukele, protests involving thousands of people against the decision to make Bitcoin legal tender has marred the country.
Protestors marched the streets with signs shaming Bukele’s decision and labelling the nation’s political situation as a ‘dictatorship’, with some resorting to the destruction of property by burning Bitcoin ATMs.
The country currently owns $38m worth of Bitcoin, therefore a market crash could have dire consequences on the nation’s economy.
Félix Ulloa, the vice president of El Salvador, said an unnamed Swiss company offered to buy the country’s Bitcoin stash at $50,000 a unit, regardless of the daily market value, in what is a futures contract.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.