Bitcoin soaring: El Salvador's President Nayib Boucle said Bitcoin this week surpassed the $100,000 level for the first time, hitting an all-time high, as Central American governments' investments in crypto tokens increased to more than $600 million. The Associated Press reported that the event was celebrated.
And now, Bloomberg reports, Vancouver Mayor Ken Sim says his city will consider a similar investment in Bitcoin to diversify its fiscal reserves.
At the time of writing, Bitcoin was at $98,300.56 (down 4.17% from the previous day), according to data available on Coinmarketcap. According to the data, the world's largest cryptocurrency has a market capitalization of $1.9 trillion.
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El Salvador's President Nayib Boucle celebrates Bitcoin gambling acquittal
Bukele made a big bet on cryptocurrencies in 2021, adopting them as legal tender in the country. Since this move, Bitcoin has plummeted to $16,000 due to well-timed sector failures, including the collapse of cryptocurrency exchange FTX and the arrest of Binance founder Qiao Changpeng.
However, as of December 5, El Salvador's investments in Bitcoin exceeded the equivalent of $600 million, as Bitcoin breached the $100,000 level.
Over the course of the year, Bitcoin has gained 45%, especially since Donald Trump won the US election.
Bukele wrote on Facebook: “Not only did the opposition make big mistakes about Bitcoin, but unlike other issues (where they also made mistakes), this time the opposition made big mistakes that affected a lot of people. It is important to emphasize what we have given.” The post also received a comment from Elon Musk of X (formerly Twitter), who simply wrote, “Impressive” on December 5th.
Also read | Bitcoin price hits new all-time high of $100,000 on optimism over President Trump's cryptocurrency plans
Carlos Acevedo, El Salvador's former central bank president, was cautious, noting that despite the gains, volatility remained a risk, according to the Associated Press. “While the average Salvadoran does not use Bitcoin, there are clearly some Salvadorans with financial means who have already invested in Bitcoin, but that is a small group,” Acevedo said. he said.
The IMF also addressed the country's Bitcoin investments in August, saying, “While many of the risks have not yet materialized, there is a need to increase transparency and reduce potential fiscal and financial stability risks arising from Bitcoin projects.” There is a common recognition that further efforts are needed.”
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Vancouver mayor proposes integrating Bitcoin into city finances
Vancouver Mayor Ken Sim said his city council will consider integrating bitcoin into city finances on December 11, Bloomberg reported, noting that Sim's party has a majority on the city council.
The motion proposed by Sim is titled “Maintaining the City's Purchasing Power by Diversifying Fiscal Reserves – Becoming a Bitcoin-Friendly City,” the report added. The move is intended to direct city officials to analyze the possibility of accepting Bitcoin for taxes and fees, or converting a portion of the city's fiscal reserves into tokens.
As examples, Sim cited the gains made by El Salvador and the Swiss city of Zug (which accepts Bitcoin as a tax). They also argue that such moves foster innovation. Vancouver is the capital of the Canadian province of British Columbia.
(With information from AP and Bloomberg)
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