Salvador secured the lead in the field of cryptocurrencies. He introduced bitcoin as currency – ČT24 – Czech Television

In turn, it will bring financial inclusion, investment, tourism, innovation and economic development for our country.

Let no one tell us that we are too small to be big ????????

– Nayib Bukele ???????? (@nayibbukele) June 9, 2021

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By financial inclusion, he meant the involvement of thousands of people in the legal economy. The President of El Salvador has previously pointed out that “seventy percent of the population does not have a bank account and works illegally.” Those who use bitcoin are not at risk, he said. “The government will guarantee the conversion to the exact dollar value at the time of each transaction,” he wrote.

After approval by parliament, the 39-year-old president added on Twitter that he had commissioned the state geothermal power company LaGeo to come up with a plan for a facility for bitcoin mining using renewable energy from local volcanoes. “It will evolve quickly!” He added on the same social network.

The price of bitcoin has been stagnating recently

In recent weeks, Bitcoin has been facing growing criticism that its extraction consumes large amounts of energy and thus has negative environmental impacts. Tesla boss Elon Musk used this argument to justify a change in his decision to accept bitcoin payments in Tesla, which sharply weakened this most famous cryptocurrency last month.

El Salvador’s economy is dependent on the inflow of money from abroad. In 2019, these payments amounted to almost six billion dollars (125.2 billion crowns), ie about a quarter of gross domestic product (GDP).

“El Salvador’s move can, on the one hand, strengthen the credibility of bitcoin and, on the other hand, jeopardize its economy due to large and sudden exchange rate fluctuations. The announcement will mean a positive impulse for investors who have been selling bitcoins under the influence of negative news in recent weeks, “said cryptocurrency specialist Martin Stránský.

According to Trinity Bank chief economist Lukáš Kovanda, bitcoin responded to the report with an appreciation of about three percent. “The weaker market response to such a potentially groundbreaking step stems from the global atmosphere that now surrounds cryptocurrencies. This is determined mainly by governments and central banks of key economies such as the United States or China. They are currently taking steps to suppress rather than support cryptocurrencies, “he said.

“Bitcoin has dropped from half of its price maximum of almost $ 65,000 apiece to half price and is now selling for $ 34,000. He is also not helped by tweets and statements by Tesla boss Elona Muska, Tesla’s boss. It has clearly turned away from bitcoin in recent weeks, “said Kovanda.

However, around 20:30 CEST, Bitcoin strengthened more significantly. On the stock exchange, Bitstamp added over ten percent to about $ 36,300 (756,970 crowns).

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