Bitcoin, the world's biggest and best-known cryptocurrency,
is up 30.8 percent from the year's low of $27,734 on January 4.
Ether, the coin linked to the Ethereum blockchain network,
rose 2.29 percent to $2,566.4 on Wednesday, adding $57.55 to its previous
close.
On June 9, El Salvador became the first country in the world
to formally adopt Bitcoin as legal tender after Congress approved President
Nayib Bukele's proposal to embrace the cryptocurrency.
With 62 out of 84 possible votes, a majority of lawmakers
voted in favour of the initiative to create a law that will formally adopt
Bitcoin, despite concern about the potential impact on El Salvador's programme
with the International Monetary Fund.
Bukele has touted the use of Bitcoin for its potential to
help Salvadorans living abroad to send remittances back home, while saying the
US dollar will also continue as legal tender.
"It will bring financial inclusion, investment,
tourism, innovation, and economic development for our country," Bukele
said in a tweet shortly before the vote in Congress, which is controlled by his
party and allies.
He added that the use of Bitcoin, whose use will be
optional, would not bring risks to users. Its use as legal tender will go into
law in 90 days.
"The government will guarantee the convertibility to
the exact value in dollars at the moment of each transaction," Bukele
said.
El Salvador's dollarised economy relies heavily on money
sent back from workers abroad. World Bank data showed remittances to the
country made up nearly $6 billion or around a fifth of GDP in 2019, one of the
highest ratios in the world.
© Reuters
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