Bitcoin is higher after the leader of El Salvador has announced that his country will officially adopt the world’s largest digital currency for its legal tender.
Bitcoin went up on Wednesday, flipping its deep losses over the previous two weeks after the president of El Salvador said his nation has enacted a law to accept the world’s top digital currency as its legal tender.
Bitcoin was higher almost 8% at $35,142 after Nayib Bukele, the El Salvador President, made the announcement. The leader said he believes the move will create jobs and give more financial inclusion.
Latin America’s youngest leader, who is known for breaking norms, revealed on Twitter that the nation’s lawmakers accepted the legislation with a “supermajority.”
Bukele previously said Bitcoin would help the economy and help turnaround El Salvador’s low banking penetration and facilitate better transfers for $6 billion of remittances per year.
The move to use the digital currency as legal tender is a much needed bit of good news for the top cryptocurrency, which was struggling to regain territory from its May downturn.
Bitcoin decreased to a two-week low this Tuesday after the seizure of the Colonial Pipeline’s hacker ransom gave investors concerns about Bitcoin’s alleged gold-like security.
Some skeptics, like Real Money’s Doug Kass take another approach to the digital currency, saying solidly that such digital currencies are not based on fundamentals that give viable payment options or store of value.
“I think cryptocurrency is like Tinkerbell’s light — its energy source is based on enough people believing in it,” Kass said.
Like wrester “Rowdy” Roddy Piper, “I’ve come to chew gum and kick ass … and I’m all out of gum.”
Kass continued: “Even with reports and articles from very intelligent cryptocurrency watchers, I remain a solid Bitcoin bear.”
Other skeptics note Bitcoin’s fees for money transfers at a time when most banks are moving to eliminate all fees for fiat money transfers as a reason why the cryptocurrency will fail eventually.