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El Salvador Starts Bitcoin As Currency

El Salvador’s Bitcoin acceptance further legitimizes the belief that people should be in control of their money,

SAN SALVADOR, El Salvador (AP) — El Salvador became the first country to adopt Bitcoin as legal tender Tuesday, but the rollout stumbled in its first hours and President Nayib Bukele said the digital wallet used for transactions was not functioning.

For part of the morning, El Salvador’s president became tech support for a nation stepping into the world of cryptocurrency. Bukele marshaled his Twitter account — with more than 2.8 million followers — to walk users through what was happening.

The “state created” digital wallet called “Chivo” is not exactly a private wallet, but more of a state owned wallet for its citizens to hold there Bitcoin, the wallet addresses are controlled by the government and not by the individual, – not so democratic. – so in effect they can disable your wallet at will and the user have no control over it.

However “In the coming years, many more nation-states will use crypto as part of their monetary policy, either as reserves in their central banks or using cryptocurrency rails for central bank settlements, or potentially just simply taking a cryptocurrency — as El Salvador has done — and make it the national currency.”