On January 4, bitcoin recorded its lowest price of the year at $27,734 (approximately Rs 20.2 lakh). But now this digital currency has come 30.4 percent above that minimum price. At the time of writing this news, on June 10, the price of bitcoin in India was around Rs 26.9 lakh. The coin Ether, belonging to the Ethereum blockchain, also gained 2.29 percent to $2,566.4 (approximately Rs 1.9 lakh). It registered this increase, adding $57.55 (approximately Rs 4,200) to its previous closing. At the time of writing this news, on June 10, the price of Ethereum in India was Rs 1.9 lakh.
On June 9, El Salvador became the first country in the world to formally adopt bitcoin as legal tender when Congress approved President Nayib Bukele’s proposal to adopt the cryptocurrency. A majority of lawmakers voted in favor of a law-making initiative for this, with 62 out of 84 possible votes. This law would formally allow the adoption of bitcoin. However lawmakers were aware that El Salvador’s program with the International Monetary Fund could have potential implications. But still he voted for it.
Bukele spoke about using bitcoin for its ability to help Salvadorans living abroad send remittances back home. But the US dollar will also continue as a legal tender. “This will bring financial inclusion, investment, tourism, innovation and economic growth to our country,” Bukele said in a tweet moderated by his party and allies shortly before the vote in Congress.
He further added that the use of bitcoin, the use of which would be optional, would not pose a risk to the users. Its use as a legal tender will be converted into law in 90 days. El Salvador’s dollarized economy relies heavily on money repatriated by workers abroad. World Bank data shows that remittances into the country accounted for around $6 billion (about Rs 43,790 crore) or one-fifth of the 2019 GDP, one of the world’s highest proportions.