President Nayib Bukele's government claims the move will give many Salvadorans access to bank services for the first time and save some $400 million in fees on remittances sent home from abroad every year.
Recent opinion polls showed a majority of El Salvador's 6.5 million people reject the idea and will continue using the US dollar, the country's legal currency for the last 20 years. "We see that people do not perceive a positive impact to significantly transform their living conditions," she told AFP.
For its part, the Salvadoran Foundation for Economic and Social Development said it was "unconstitutional" to make it compulsory for merchants to accept bitcoin as a form of payment.Bukele, who is popular but under fire in several quarters for moves to tighten his grip on power, has accused opponents of seeking to "sow fear" among Salvadorans, few of whom have access to formal banking services.