El Salvador became the first country on Tuesday to accept bitcoin as legal tender, NBC News reported.
Businesses in the country can accept the cryptocurrency as payment alongside the U.S. dollar. President Nayib Bukele said this move will help Salvadorans save up to $400 million a year on commissions for remittance, according to reports.
According to Bukele, every citizen who signs up for a government digital wallet would receive $30 in the digital currency.
“The process of #Bitcoin in El Salvador has a learning curve. Every step toward the future is like this, and we will not achieve everything in a day, nor in a month,” he tweeted on Monday. “But we must break the paradigms of the past. El Salvador has the right to advance towards the first world.”
Fans of bitcoin have been buying $30 worth of the cryptocurrency to help drive up the price, according to BBC. The country bought 400 bitcoins worth over $20 million at current trading levels. The price of bitcoin sits at slightly over $50,000.
Some critics of El Salvador’s decision to accept the digital currency as legal tender said there could be an increase in money laundering in the country.
The Biden administration has accused Bukele of chipping away at democracy in the Central American country.