El Salvador becomes first country to adopt Bitcoin as national currency

El Salvador is the first country to have the Bitcoin cryptocurrency as its official national currency alongside the US dollar. President Nayid Bukele has announced that he will purchase 400 bitcoins, which are worth nearly $20.9 million at current trading levels.

Supporters say the move will make it cheaper and easier for migrants to send money to El Salvador, as remittances account for more than 24% of the country's GDP. They also hope that it could improve citizens' access to financial services, as CNN reported that over 70% of El Salvador's "active population" don’t have a bank account.

However, there are several concerns about the adoption of such a historically volatile currency, as it lost nearly half its value this summer.

El Salvador has been ready to support cryptocurrency for months, after installing 200 ATMs across the country last month to allow citizens to convert between the country's two official currencies. In fact, it launches its own digital wallet called Chivo, which provides users $30 of free Bitcoin.