At 3:30 a.m.ET on Thursday, the virtual currency was trading at $ 36,849 per coin, jumping about 7.9% in the past 24 hours, according to CoinDesk.
Salvadoran lawmakers made history on Wednesday by approving a proposal by President Nayib Bukele that would allow bitcoins (XBT) be used as a form of legal tender in the country, alongside the US dollar.
The law states that “all economic agents accept bitcoin as a means of payment when it is offered by the buyer of a good or a service”. It also states that tax payments can now be made in bitcoin.
The move offers another victory for cryptocurrency bulls as digital coins gain acceptance around the world.
Before the vote in El Salvador, Bukele had said in a Tweeter
that the use of bitcoin as legal tender would promote financial inclusion, tourism, innovation and economic development.
El Salvador is the smallest country in Central America, and while it quickly brought the coronavirus pandemic under control, its economy was hit hard last year, according to the World Bank.
Cryptocurrencies do not require a bank account; they are held in digital wallets. This could help people in poorer communities – like many in El Salvador but also in minority communities in the United States – to have better access to their finances.
Bitcoin has been on a roller coaster lately. It crashed nearly 40% in the past month after hitting a record high of over $ 60,000 earlier this year.
One of the main triggers of recent unpredictability has been Elon Musk. the You’re here (TSLA) The CEO often creates a sensation among investors with his take on cryptocurrencies.
Last month, for example, bitcoin fell after Musk appeared to suggest his automaker may have emptied his virtual currency holdings. He then clarified that Tesla had not sold any bitcoin, helping its price to rebound within minutes.
China has also rocked the market by signaling new plans to curb the industry. In May, Vice Premier Liu He told finance officials that the government would “crack down on bitcoin mining and trading,” shaking investors.
– Charles Riley, Mitchell McCluskey and David Goldman contributed to this report.