Bitcoin and Ethereum, the cryptos with the highest capitalization of the market, received a severe blow in their prices in the last hours. The average loss was around 10% for each crypto.
The context of the losses is due to the liquidation that occurred in the markets and the high exposure that became after the implementation of BTC in El Salvador.
The historic decision to adopt BTC as legal tender in El Salvador this Tuesday, was surrounded by questions. From protests throughout the country to technological failures and access to the transaction application, they were some of the protagonists of the scenario that was lived.
Crypto is in use in retail stores like Starbucks, McDonald’s, etc. The decision to implement BTC according to the ruling party, is that it will help Salvadorans save $ 400 million a year in remittance commissions and will give access to financial services to people who did not have it.
This will open a new dilemma regarding control over the flow of funds and their origin.
However, despite controversies and disagreement from entities such as the IMF and the World Bank, Panama is developing an adapted bill, where they seek to promote the use of BTC and ETH as a payment method.
The country’s legislators would support the use of blockchain technology in the public and banking sectors. The project promotes bitcoin as protection against inflation and includes other cryptocurrencies such as Ethereum and Cardano, as implementation assets.
The difference between Panama and El Salvador, would be that it would not require merchants to adopt bitcoin or any other crypto and would not force them to adopt bitcoin as a currency in principle.