Cryptocurrency: Is El Salvador on the verge of becoming a crypto industry leader?
THE CRYPTOCURRENCY INDUSTRY reached a big milestone today when El Salvador declared Bitcoin to be legal tender, but does this portend a trend for the world economy?
After the country’s president opted to accept cryptocurrency, Bitcoin will soon be used as legal tender in El Salvador. The usage of the digital coin will not be compulsory, and the US dollar will continue to be the country’s official currency. Many cryptocurrency specialists, on the other hand, have lauded the decision as a significant step forward for the global cryptocurrency sector.
Individuals and countries have varying reactions to Bitcoin.
After a big price drop at the start of the week, the digital currency rallied back on Wednesday, June 9.
Cryptocurrencies gained traction after El Salvador stated that Bitcoin would be recognized as legal cash.
This means that residents of El Salvador can now use bitcoin to pay for goods and services.
On Tuesday night, Congress backed President Nayib Bukele’s request to adopt cryptocurrency.
With 62 votes out of a possible 84, the vote passed.
In 90 days, Bitcoin will join the US dollar as legal money.
President Bukele said the action was historic, and that it will make it easier for Salvadoreans living overseas to transfer money back home.
“It will bring financial inclusion, investment, tourism, innovation, and economic prosperity for our country,” President Bukele stated in a tweet.
Following the announcement, the price of bitcoin increased by 5%.
Other popular cryptocurrencies also gained a few points.
The jump was mirrored in a 7.06 percent increase in the total market capitalization of all cryptocurrencies, which surpassed $1.5 trillion.
Bitcoin’s current price is $36,237.16, a rise of 10.18 percent in the last 24 hours but a decline of 3.98 percent in the last seven days.
Bitcoin’s price has just re-crossed the $35,000 mark, up roughly $5,000 from yesterday’s lows.
Several more Latin American countries are expected to follow suit in the near future.
Politicians from Argentina, Brazil, Mexico, Panama, and Paraguay have all indicated interest in bitcoin.
Carlos Rejala, a lawmaker from Paraguay, said he intends to enact a similar bill next month to attract cryptocurrency investment.
“As I mentioned a long time ago, our country must progress hand in hand with the younger generation,” he remarked.
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