El Salvador adopts Bitcoin as legal tender
After touching a record low in the last three weeks, Bitcoin price jumped above $36,000 on Thursday morning. The world’s largest cryptocurrency climbed 13.60% to $37,182.49 at 0720 hours IST on June 10. The cryptocurrency surged on Thursday after a country had made Bitcoin a legal tender. El Salvador became first country in the world to adopt Bitcoin as legal currency. With 62 out of 84 votes, a majority of lawmakers voted in favour of the initiative to approve the cryptocurrency as a legal tender. Bitcoin was up around 30.8% from the year’s low of $27,734 on January 4.
“The economy of El Salvador and it’s dependence on remittances is the key reason for their shift to Bitcoin. This will be the first-ever instance of a country adopting Bitcoin as legal tender and it will be interesting to see what happens once this shift takes place,” said Sumit Gupta, chief executive and CoFounder of CoinDCX.
“This is great news for the overall crypto ecosystem and proves that crypto is a global phenomenon that is not going anywhere. Countries that acknowledge the fact that crypto assets present a paradigm shift for the future of global finance and embrace it, will definitely gain in the long term,” he added.
El Salvador’s president Nayib Bukele said on Twitter on Wednesday that he has instructed state-owned geothermal electric firm LaGeo to come up with a plan to offer bitcoin mining facilities using renewable energy from the country’s volcanoes. “This is going to evolve fast!,” he added.
All the major cryptocurrencies — Ether, Binance, Dogecoin, Cardano, XRP — saw an increase on Thursday. Ether, the coin linked to the Ethereum blockchain network, edged higher on Thursday. The second most popular cryptocurrency was trading 5.27% higher higher at $2,566.40 on Thursday morning.
While Dogecoin, which was created as a parody cryptocurrency, increased 7.59%, Binance Coin grew nearly 10%.
(Note: This article has been reproduced from another news agency with changes to the title)