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There are some potential benefits to switching to cryptocurrency, including helping to reduce the cost of remittances, which are estimated to account for a quarter of the country’s GDP. But El Salvador still has a host of technical and financial challenges to overcome.

Technical errors
The plan was passed by the country’s legislature in a matter of hours and implemented in about 90 days. Since El Salvador was the first country to make Bitcoin legal tender, it has no precedents to look to. And that’s noticeable.

The Bitcoin implementation plan has been outsourced to at least czech republic number data five private companies, one of which is OpenNode, which reportedly powers McDonald's cryptocurrency operations.

Despite the large number of participants, there seems to be no central organization in the country offering technical support or training. What about people without a mobile phone or those who can’t access a Bitcoin ATM, which remains the main way to get cash? What if a business needs something more complex than a wallet app to accept payments?

Several Chivo kiosks were set up in squares across the country, but they were not very active, The Wall Street Journal reports. From time to time, Bukela himself offered technical support on his Twitter.

Volatility and financial stability
In the world of cryptocurrency, there is a way to offset the fluctuation in the Bitcoin exchange rate - stablecoins , whose value is tied to fiat currency to make them more attractive as a means of payment.

El Salvador has vague plans to introduce its own stablecoin, a digital version of the colon, the currency used before the dollar transition. But at this point, it’s just an idea, and the country can only use bitcoin with its fluctuating price.

If the exchange rate falls, businesses will have to raise prices. If it rises, consumers will lose purchasing power.