Bitcoin price drops on first day of official use of cryptocurrency in El Salvador

It’s a choppy day for Bitcoin, which briefly dropped more than 10% this Tuesday (7) – below $43,000.

The fall happens after that El Salvador implemented the plan announced in June and adopted cryptocurrency as legal tender, becoming the first country in the world to do so.

This measure received some criticism in El Salvador, where people protested, as well as abroad.

The country needs a stable monetary system and an efficient payment system. Since neither the government nor the Bank of El Salvador will create a central bank digital currency, it makes sense for them to adopt another major stable digital currency, whether it is offered centrally or decentralized, said Willkong, a finance professor at Cornell University. University in the email comments.

However, adoption as legal tender was, in principle, good news for the spread of Bitcoin. Edward Moya, chief market analyst at Oanda, said the cryptocurrency plummeted on Tuesday as the “rumor-buying, news-selling” phenomenon of Salvadoran politics emerged.

The Central American country had earlier bought 200 bitcoins, bought another 200 late Monday night before the official adoption, and another 150 on Tuesday, bringing the country’s total to 550 bitcoin.

The state will also give residents $30 in bitcoins by downloading the Chivo state wallet app to encourage citizens to try crypto payments.

Bitcoin traded at nearly $53,000 per coin on Monday in Salvadoran activity.
With the New York Stock Exchange open on Tuesday, the digital currency was fairly stable, and around noon, it dropped to a 24-hour low of $42,921, according to data from CoinDesk.

Salvadoran President Neb Bokel, a right-wing populist who came to power in 2019, tweeted that he was “buying back”.

Although the crypto was far from its all-time low, it was down about 9.5% by mid-afternoon. “Looks like the opponent is running out,” Bukele tweeted before.

* Text translated from English. to read the original, click here