Bitcoin plummets on the first day after El Salvador accepted it as a legal tender, leading to protests.
El Salvador Loses $3 Million
Bitcoin reached its lowest point in around a month, crashing from $52,000 to under $43,000. As a result, El Salvador lost $3 million.
Another problem that no one envisioned was that platforms such as Apple and Huawei weren’t supporting Chivo – the government-backed digital wallet. Consequently, as the servers couldn’t keep up with the traffic, the authorities had to pull them offline.
Later, however, the digital wallet did appear on some platforms. Giants like MacDonald’s and Starbucks accepted bitcoins as payment.
The authorities claimed the move would save El Salvador $400 million. But the BBC took data from the World Bank and the government and calculated that the total amount was closer to $170 million.
Protests in San Salvador
Around 1,000 protestors took the streets of the capital San Salvador.
Johnny Wright Sol, a politician from the opposition, said: “The majority of the population knows very little about cryptocurrencies. What we do know is it’s a very volatile market. Today that was surely made manifest.”
According to him, the government approved the law without enough debate. He also thinks that authorities shouldn’t force businesses to accept cryptocurrency as payment.