El Salvador becomes the first country to use Bitcoin as currency

A representation of the virtual cryptocurrency Bitcoin.

El Salvador has become the first country in the world to adopt Bitcoin as legal tender.

The plan, spearheaded by President Nayib Bukele is aimed at allowing Salvadorans to save on 400 million dollars spent annually in commissions for remittances, mostly sent from the United States.

Polls show that Salvadorans have voiced cautious optimism over using bitcoin with some wary of the volatility of the cryptocurrency.

In the run-up to the launch, the government has been installing ATMs of its Chivo digital wallet that will allow the cryptocurrency to be converted into dollars and withdrawn without commission.

Bukele has defended the legislation.

Millions who send and receive remittances know that high costs have to be paid to send them. This will benefit those who send remittances as well as those who receive them. Millions of people will benefit from not paying these prices but also because they will receive them immediately without any minimum.