London Daily

Focus on the big picture.
Friday, Aug 22, 2025

El Salvador officially adopts Bitcoin as currency - with a few hiccups

El Salvador officially adopts Bitcoin as currency - with a few hiccups

Skepticism around Bitcoin was not dispelled when Salvadorans couldn't access the country's new digital wallet - or when its price slid.

Bitcoin's price continued to plunge on Wednesday - a day after its heaviest losses in the two and a half months since El Salvador voted to adopt the crypto asset as legal tender - causing angry protests and havoc online.

At one point on Tuesday, the digital currency fell as much as 18.6 per cent, wiping out more than $180 billion (€152 billion) from the market.

The coin last traded at $46,560 (€39,361), having endured a rocky day's trading on Tuesday which saw it hit a near four-month high of $52,956 (€44,769) before then plunging 11.1 per cent, its largest fall since June 2.

In a historic move, El Salvador became the first country on Tuesday to officially adopt the cryptocurrency as legal tender but it got off to a bumpy start.

Technological glitches hampered its use while street protests by mistrustful citizens broke out in the Central American country.

Proponents say the move will lower commission costs for billions of dollars sent from abroad but which critics warned may fuel money laundering.

The change means businesses should accept payment in Bitcoin alongside the US dollar, which has been El Salvador's official currency since 2001 and will remain legal tender.

A woman protests against the circulation of Bitcoin in San Salvador on September 7, 2021.


President Nayib Bukele, who has pushed for adopting the cryptocurrency, says it will help Salvadorans save about $400 million (€338 million) the government calculates is spent annually on commissions for remittances while giving access to financial services to the unbanked.

Ahead of the launch, El Salvador bought 400 Bitcoins, Bukele said, helping drive the currency price above $52,000 (€ 44,000) for the first time since May.

But underscoring the risks, hours later on Tuesday Bitcoin weakened.

In response, Bukele confirmed in a tweet that El Salvador had bought 150 more Bitcoin in "the dip" so as to benefit more when the price rose again.


Public skeptical of Bitcoin

Doubters say Bitcoin could increase regulatory and financial risks for the Central American nation, and polls show Salvadorans are wary of the volatility of the cryptocurrency, which can shed hundreds of dollars in value in a day.

To warm up a skeptical public, Bukele has promised every citizen $30 (€25) in Bitcoin if they sign up for a government digital wallet.

In the early hours of Tuesday, El Salvador's national digital wallet, Chivo, had not appeared on Apple Inc, Google and Huawei's app download platforms, however, prompting a series of tweets from Bukele, including one with a red-faced "angry" emoticon.


"Release him! @Apple @Google and @Huawei," Bukele said. The wallet was later available from Huawei.

Some citizens were optimistic.

"It's going to be beneficial ... we have family in the United States and they can send money at no cost, whereas banks charge," said Reina Isabel Aguilar, a store owner in El Zonte Beach, some 49 km southwest of capital San Salvador.

Known as Bitcoin Beach, the town of El Zonte aims to become one of the world's first bitcoin economies. However, uptake may be slowed by low internet penetration across the country. It remains unclear whether businesses will be sanctioned if they do not adopt the new currency.

In the run-up to the launch, the government installed ATMs that will allow bitcoin to be converted into dollars and withdrawn without commission from the Chivo digital wallet.

Bukele on Monday asked for patience.

"Like all innovations, El Salvador's Bitcoin process has a learning curve," he said on Twitter. "Not everything will be achieved in a day, or in a month."

El Salvador's President Nayib Bukele offers a prayer in congress.


Bukele has taken over the levers of power


In barely two years in office, Bukele has taken control of almost all levers of power. Last week, top judges appointed by his lawmakers ruled he could serve a second term.

The 40-year-old president is popular with the public but has been accused of eroding democracy, including by the administration of US President Joe Biden.

Bukele has promised to clean up graft, but the US recently put some of his close allies on a corruption blacklist.

Analysts fear adopting the cryptocurrency could fuel money laundering.

After the bitcoin law was approved, rating agency Moody's downgraded El Salvador's creditworthiness, while the country's dollar-denominated bonds have also come under pressure.

The move has muddied the outlook for El Salvador's quest for more than $1 billion (€843.8 million) in financing from the International Monetary Fund (IMF).

But Bukele, who does not shy away from controversy, on Monday retweeted a video that showed his face superimposed on actor Jaime Foxx's in a scene from Django Unchained, a Quentin Tarantino film about American slavery. The video portrayed Bukele whipping a slave trader who had the IMF emblem emblazoned on his face.

Bukele later deleted the retweet.

In his own tweet, Bukele said: "We must break the paradigms of the past. El Salvador has the right to advance towards the first world".

Newsletter

Related Articles

0:00
0:00
Close
After 200,000 Orders in 2 Minutes: Xiaomi Accelerates Marketing in Europe
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
Taylor Swift on the Way to the Super Bowl? All the Clues Stirring Up Fans
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Apple Expands Social Media Presence in China With RedNote Account Ahead of iPhone 17 Launch
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Bill Barr Testifies No Evidence Implicated Trump in Epstein Case; DOJ Set to Release Records
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
Emails Worth Billions: How Airlines Generate Huge Profits
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
JPMorgan Plans New Canary Wharf Tower
Zelenskyy and his allies say they will press Trump on security guarantees
Beijing is moving into gold and other assets, diversifying away from the dollar
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
The Drought in Britain and the Strange Request from the Government to Delete Old Emails
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
"No, Thanks": The Mathematical Genius Who Turned Down 1.5 Billion Dollars from Zuckerberg
The surprising hero, the ugly incident, and the criticism despite victory: "Liverpool’s defense exposed in full"
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
×