El Salvador, on Tuesday, became the first country in the world to allow bitcoin to be traded as legal tender, a move that was followed by fluctuations in the price of the world's most famous currency, and raised legal concerns about the transactions.
Salvadoran President Najib Bukele, who has pushed for the adoption of the cryptocurrency, said its use would help Salvadorans save $400 million annually in remittance commissions, while providing access to financial services for those without a bank account.
Bukele called on users who have already downloaded the government-backed currency trading app to test whether it is working properly. He wrote on Twitter: "Can you try to score and post in the comments if there are any bugs or if the whole process is working fine?".
The move in El Salvador means that companies must accept payments in bitcoin along with the US dollar, which has been El Salvador's official currency since 2001 and will remain legal tender.
It remains unclear whether companies will be penalized if they do not accept bitcoin.
In the run-up to the launch, the government installed ATMs that allow bitcoins to be converted into dollars and withdrawn without a commission.
The government earlier had to shut down the digital wallet "Chivodigital" to deal with the high demand. Salvadorans found that the wallet, which was promoted by the government and promised $30 of bitcoin per user, was not available in popular app stores. Later, the president tweeted that the government had temporarily disconnected it in order to connect more servers to handle the request.
Before the launch, El Salvador bought 400 bitcoins worth $20 million, Bukele said, helping push the coin's price above $52,000, for the first time since May, but hours later, its value was down 8.84 percent at $47327.32.
Ethereum fell by 10.52 percent to $3,537.62, while cryptocurrency exchange Coinbase fell by 3.96 percent after delays in some transactions were reported.
Citizens' opinions differed on this step, and Carlos Garcia, who enthusiastically went to a shopping center to learn more about the currency, believes that "El Salvador is taking a big step forward today."
However, the poorest may struggle to access the technology needed to make the currency work in El Salvador, where nearly half of the population has no internet and many have intermittent access.
Polls indicate that Salvadorans are concerned about the volatility of the cryptocurrency, which could lose hundreds of dollars in value in a single day.
Analysts fear that the adoption of the currency, where records of online transactions are distributed outside national jurisdictions, could lead to money laundering.
After the bitcoin law was approved, rating agency Moody's downgraded El Salvador's credit rating, while its dollar-denominated bonds came under pressure.
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