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When a Nation Went Bitcoin: The Story of El Salvador’s Crypto Leap In September 2021, the tiny Central American nation of El Salvador made history—becoming the first country in the world to adopt Bitcoin as legal tender. What began as a bold experiment under President Nayib Bukele quickly turned the global financial community on its head. A Law That Shook the World The “Bitcoin Law” passed on June 9, 2021, required every business in El Salvador to accept Bitcoin for goods and services. By September 7, Bitcoin officially became legal currency alongside the U.S. dollar. The government launched a digital wallet called Chivo, giving every citizen $30 in BTC as a welcome bonus.
The World Watches—and Reacts Crypto enthusiasts called it revolutionary. Bitcoin advocates like Jack Dorsey and Michael Saylor praised the move. But global institutions like the IMF and World Bank issued warnings, citing volatility and economic risk. Protests erupted in San Salvador, with some citizens concerned about forced crypto usage. Volatility Hits Hard El Salvador bought thousands of BTC for its national treasury, often announced publicly by President Bukele on Twitter.
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