The value of 24-hour Bitcoin falls sharply after El Salvador officially recognized it
The value of the 24-hour Bitcoin cryptocurrency has dropped significantly after El Salvador decided to officially recognize it.
Bitcoin fell as much as 16% on Tuesday morning, and traded at $ 46,860 from $ 52,500 that was, according to Coin Metrics.
As part of the new law, businesses in El Salvador will be required to accept bitcoin for goods and services, although traders who are not technologically capable of accepting bitcoin will be excluded. The government has installed 200 bitcoin ATMs across the country.
Bitcoin supporters have long said that there is a strong case for Latin American markets using cryptocurrency as a medium of exchange, for remittances and even for central banks experiencing high currency devaluation.
On Monday, Panamanian politician Gabriel Silva introduced the 'Encryption Law', which 'seeks to make Panama a country compatible with blockchain, crypto assets and the internet.
'This has the potential to create thousands of jobs, attract investment and make government transparent,' he said on Twitter.
It is learned that several other valuable cryptocurrencies have also declined, including Ethereum (ether), Cardano (ada) and Binance Coin.