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Bitcoin soars after El Salvador said it will accept it as legal tender

2021-06-10T23:15:59.175Z


The value of Bitcoin soared after El Salvador became the first country in the world to accept it as legal tender.


Advantages and disadvantages of bitcoin in El Salvador 4:16

Hong Kong (CNN Business) -

Bitcoin's value soared after El Salvador became the first country in the world to accept it as legal tender.

As of 3:30 a.m. ET on Thursday, the virtual currency was trading at $ 36,849 per coin, jumping around 7.9% in the past 24 hours, according to CoinDesk.

Salvadoran lawmakers made history on Wednesday by passing a proposal by President Nayib Bukele that would allow bitcoin to be used as a form of legal tender in the country, alongside the US dollar.

The law establishes that "all economic agents will accept bitcoins as a form of payment when it is offered by the buyer of a good or service."

It also says that tax payments can now be made with bitcoin.

  • Nayib Bukele and her laser eyes in support of bitcoin on Twitter

The move offers another win for crypto bulls as digital currencies become more accepted around the world.

Before the vote in El Salvador, Bukele had said in a tweet that using bitcoin as legal tender would promote financial inclusion, tourism, innovation and economic development.

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El Salvador is the smallest country in Central America, and while it was quick to contain the coronavirus pandemic, its economy was hit hard last year, according to the World Bank.

Cryptocurrencies do not require a bank account;

they are kept in digital wallets.

That could help people in the poorest communities, like many in El Salvador, but also in minority communities in the United States, gain greater access to their finances.

Bitcoin has been on a roller coaster ride lately.

It plunged nearly 40% in the past month after skyrocketing to a record over $ 60,000 earlier this year.

  • Is it a good idea for El Salvador to seek to adopt bitcoin as legal tender?

One of the main triggers for the recent unpredictability has been Elon Musk.

The Tesla CEO frequently causes a stir among investors with his views on cryptocurrencies.

Last month, for example, Bitcoin fell after Musk appeared to suggest that his automaker may have abandoned its holdings of the virtual currency.

He later clarified that Tesla had not sold any bitcoin, which helped its price rally in minutes.

China has also shaken the market by signaling new plans to slow down the industry.

In May, Vice Premier Liu He told finance officials that the government would "clamp down on bitcoin mining and trading activity," which left investors puzzled.

Charles Riley, Mitchell McCluskey, and David Goldman contributed to this report.

Bitcoin El Salvador

Source: cnnespanol

All news articles on 2021-06-10

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