DStv Channel 403 Thursday, 07 November 2024

El Salvador's 'Bitcoin Beach' cheers cryptocurrency surge

EL SALVADOR - In a surf town in El Salvador nicknamed "Bitcoin Beach," shopkeeper Maria Aguirre watched with delight as the cryptocurrency -- and her investment in it -- recently soared to new all-time highs.

The digital currency that she acquired four years ago for $2,200 is now worth around $19,000, she said.

The price increase "has been great and I'm very happy," the 53-year-old told AFP in El Zonte, where tourists relax on the beach and surfers ride waves.

The cryptocurrency has been legal tender since 2021 in the Central American nation, and a sign in Aguirre's store selling food and soft drinks tells customers: "Bitcoin accepted."

Located 58 kilometres southwest of the capital San Salvador, El Zonte gained its nickname due to its widespread early use of the cryptocurrency for payments.

"Bitcoin Beach" is also the name of an application used in the area to make transactions.

In 2021, El Salvador became the world's first country to establish bitcoin as legal tender, at the initiative of President Nayib Bukele, who has hailed the cryptocurrency's recent strong performance.

Bitcoin hit an all-time high above $73,000 last week, helped by US authorities' decision to allow greater trading accessibility, though it has since given back some of its gains.

But not everyone in El Salvador is convinced by the cryptocurrency.

According to a survey by Central American University, 88 percent of Salvadorans said that they did not use bitcoin in 2023.

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