FX

El Salvador prepares for risky cryptocurrency experiment

Impoverished nation is defying warnings against using volatile bitcoin as official currency alongside the US dollar

In less than two weeks, El Salvador will become the first country to adopt bitcoin as a national currency. No one knows what comes next.

The government of the impoverished Central American nation aims to spend up to $75m as part of a plan to hand out $30 to people who sign up to an e-wallet called Chivo, or ‘Cool’. That software-based system would allow an estimated 2.5 million Salvadorans to buy goods or pay for services in US dollars or bitcoin, El Salvador’s two official currencies as of 7 September.

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