El Salvador is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador’s capital and largest city is San Salvador. As of 2018, the country had a population of approximately 6.42 million. El Salvador’s economy has historically been dominated by agriculture, beginning with the Spanish taking control of the indigenous cacao crop in the 16th century, with production centered in Izalco, and the use of balsam from the ranges of La Libertad and Ahuachapan.
Amazingly, El Salvador is a small nation where four out of 10 people live in poverty. Cryptocurrencies have soared in popularity due to their use as a store of value, they offer wild price fluctuations that present opportunities for greater profits than investing on the regular stock exchanges of the world. Bitcoin is currently priced at $33,814 and its legal status have raised questions about whether it could ever replace traditional currency in day-to-day transactions.
The cryptocurrency market has grew to more than $2.5 trillion by the middle of last month, according to the Coinmarketcap page. This was driven by interest from increasingly serious investors from Wall Street to Silicon Valley.
Between the beginning of 2020 and a peak in mid-April of $64,870, the price of bitcoin gained nearly 800 percent.
Surprisingly, since then, the cryptocurrency has fallen in value by more than 50 percent.
Its price has fallen sharply towards a symbolic $30,000 threshold, it has not crossed since January, dragging other cryptocurrencies in its wake.
Before now, El Salvador’s main currency was the US dollar and it remains unclear how the country plans to implement bitcoin as a functioning currency.
Lawmakers in the Central American nation’s Congress passed a bill on Tuesday, 8th June, 2021 that eventually allowed the digital currency to be used for many aspects of daily life, from property purchases to tax contributions. The Bitcoin Law has been approved by a qualified majority in the legislative assembly on Tuesday, 9th June, 2021.