Prices slipped to the $47,000 level after hitting nearly $53,000 a few hours earlier, as skeptics debate whether it will be a success.
Brock Pierce, chairman of the Bitcoin Foundation, tells FOX Business that El Salvador’s adoption is a "very big deal" and will pave the way for more countries to follow.
"What’s happening here has gotten the attention of other governments," he said, noting that Panama and Honduras could be next in the queue as well as other South American countries.
El Salvador's President Nayib Bukele was promoting the Bitcoin push on Twitter, focusing on the price as well as establishments accepting the crypto, including Yum Brands Pizza Hut.
|YUM||YUM! BRANDS INC.||108.12||+0.35||+0.32%|
Still, critics, including seasoned global investor Mark Mobius, panned the idea.
"El Salvador, let’s face it, it’s on its back, it's got real problems, it’s a bankrupt country so they’re grasping at straws with bitcoin," he told Bloomberg. "So I don’t think it’s going to spread to other countries. Maybe a few other countries, Cuba, other countries that have financial problems will adopt it."
Pierce didn’t disagree with Mobius’ assessment of the country, but instead says Bitcoin is a way forward.
"The status quo isn’t working, so let’s do something different," he said noting that 70% of the country remains unbanked and if Bitcoin is successful there will be a drop in that number over the next 12 months.