Bitcoin as legal tender in El Salvador and the CAR: key lessons
Analysis of El Salvador and the Central African Republic’s experiences with Bitcoin adoption showed mixed outcomes. Which countries could be next? Blending crypto with the mainstream, El Salvador became the first country to adopt Bitcoin (BTC) as legal tender in Sep. 2021, a decision announced by President Nayib Bukele at the Bitcoin 2021 conference in Miami. This historic decision was made to address economic challenges and leverage the growing trend of digital currencies. However, the rollout was marred by various operational and regulatory challenges, including issues with the government’s digital crypto wallet, Chivo Wallet, and skepticism from the public and international financial experts. Chivo ATMs installed in El Salvador | Source: CoinATMradar El Salvador’s economy, already strained by the COVID-19 pandemic, faced increased scrutiny and uncertainty with the adoption of Bitcoin, leading to volatility in its sovereign debt ratings. Followin...