Bitcoin declines from highest level since May as El Salvador adopts it as legal tender

Bitcoin declines from highest level since May as El Salvador adopts it as legal tender

A woman uses a bitcoin ATM placed in a safety cage on January 29, 2021 in Barcelona, ​​Spain.

Cesk Memo | Getty Images

The price of bitcoin fell on Tuesday, surpassing $ 52,000 on Monday night to reach its highest level since May.

The price action comes on a day when El Salvador prepares to adopt the largest cryptocurrency by market cap as legal tender, becoming the first country to do so. Bitcoin is now down around 2.5% and was last trading at $ 50,531.19.

El Salvador has purchased 400 bitcoins worth around $ 20 million and preloads a government-run bitcoin wallet with $ 30 worth of bitcoins for Salvadorians who sign up.

Under the new law, businesses will be required to accept bitcoin for goods and services, although merchants who are technically unable to accept bitcoin will be exempt. The government has set up 200 bitcoin ATMs around El Salvador.

Many bitcoin advocates have long advocated for the use of cryptocurrency as a medium of exchange for Latin American markets, for remittances, and even for central banks experiencing a sharp depreciation of the currency.

Monday, Panamanian politician Gabriel Silva Introduction of the “law of cryptography” “Wants to make Panama a blockchain, a crypto asset and an internet friendly country,” he said on Twitter. “It has the potential to create thousands of jobs, attract investment and make government transparent,” he said.

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