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El Salvador Becomes First Country to Approve Bitcoin as Legal Tender

President says move will bring inclusion to Salvadorans who don’t have access to financial services; analysts warn of economic risks from bitcoin’s extreme volatility

Updated June 9, 2021 6:10 pm ET

Elon Musk’s comments on assets like bitcoin and dogecoin have helped send prices sky high – and crashing down – over the past year. WSJ explains Musk’s influence on cryptocurrency investors, and why some experts think the ‘Dogefather’ is taking investors for a ride. Photo illustration: Liz Ornitz

El Salvador passed a new law on Wednesday that would make the small Central American country the world’s first to deem bitcoin legal tender, a move that analysts say risks putting its economy at the mercy of the digital currency’s sharp swings.

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