El Salvador buys 400 bitcoin ahead of making it legal currency

By the numbers: 200 bitcoins had a market value of about $10 million as of Monday night, bitcoin.com notes.

The big picture: El Salvador's legislature voted in June to make bitcoin legal tender.

• The digital currency will be used alongside the U.S. dollar, the nation's official currency.

Of note: The World Bank in June rejected the government of El Salvador's request to help the government implement bitcoin, citing environmental and transparency concerns.

How it works: The government will provide a bitcoin wallet, called Chivo, which will be pre-loaded with $30 in digital currency for users who've registered with a Salvadoran national ID number. 

• "Businesses will be required to accept the digital coin in exchange for goods and services and the government will accept it for tax payments," Bloomberg notes.

What to watch: "Crypto is sexy but untested and complicated especially for a country like El Salvador,” Stifel Nicolaus & Co. managing director Nathalie Marshik told Bloomberg.

• "It’s extremely risky, and there is the question of, is the Bandesal fund big enough? The regulations look like the law, put together really quickly. It’s a big question mark."

Go deeper: El Salvador moves into bitcoin