Bitcoin becomes legal tender in El Salvador

Bitcoin has controversially become legal tender in El Salvador, the Central American country which gave up its own currency in favour of the US dollar two decades ago.

The cryptocurrency can now be used by citizens to shop, pay taxes and buy land, FT reports.

Supporters of the move, such as right-wing populist president Nayib Bukele, say it will reduce transaction costs for remittances, which are an important part of the country’s economy.

However, there is doubt over the wisdom of using Bitcoin in everyday transactions when the price is so volatile, having risen to around $51,489 today from $47,730 a week ago.