https://techmonitor.ai/policy/digital-economy/why-has-el-salvador-adopted-bitcoin-as-legal-currency

El Salvador has become the first country in the world to make bitcoin legal tender. The so-called ‘Bitcoin Law’, passed by the nation’s Legislative Assembly last week, will allow the use of the cryptocurrency alongside the US dollar, which since 2001 has been the only official currency in the Central American nation. But this week the World Bank declined to help the Salvadorian government implement the new system, citing environmental and transparency concerns and raising questions about whether the bitcoin will ever be suitable for making everyday payments.

The law was originally proposed by President Nayib Bukele, a former businessman and leader of the right-wing populist party Nuevas Ideas. With this move, the government plans to boost El Salvador’s economy, which for years has experienced low levels of economic growth. Most of the country’s population does not have a bank account and 23% of the gross domestic product comes from remittances sent from the large ex-pat community working abroad, benefitting around 360,000 households.