Salvador's parliament on Wednesday approved a law that legalizes Bitcoin, an unprecedented move backed by President Najib abukaila to boost the Central American nation's growth.
The first article of this provision states that "the aim of the law is to make bitcoin a legal currency without restrictions with the power to clear payments and unlimited in any transaction".
The law is supposed to be presented to the president by his signature.
Volatility of the digital currency markets
After a period of decline and collapse in the cryptocurrency market during the month of May, the first days of June witnessed dramatic changes, in conjunction with a series of happy news that returned green stocks to the indicators of tracking the movement of digital currencies.
According to the site" Coin Market Cap " specialized in the analysis of digital currencies, the last seven days, until noon Sunday, June 6, witnessed a marked rise in the growth of most of the famous digital currencies; the number of digital currencies in circulation reached 10.296 currencies with a total market value of 1.645 trillion dollars.
The currency "bitcoin" rose by about 1.5 percent, the currency "Ethereum" rose by about 13 percent, also the currency "Binance" rose by about 20 percent, while the currency "Dogecoin" rose by more than the threshold of 20 percent.
"Google" and "Apple"
One of the news that prompted the rise of digital currencies, the announcement of the platform "Coinbase", last Tuesday, a card that enables white-listed users to use cryptocurrencies to pay on "Apple Pay" and"Google Pay" while earning up to 4 percent of the amount of income.
In this regard, economist Ahmed Moti says that the platform "Coinbase" one of the largest digital currency trading platforms in the world, which is listed on the US stock exchange, pointing out that the news of allowing customers of the platform to buy from the companies "Google" and"Apple" is positive news for those working in the digital currency market.
But muti points to the site " Sky News "that this agreement between" Coinbase "and the two technology giants is not considered a recognition of them cryptocurrency, noting that the transactions between Coinbase and Google and Apple will be in US dollars, meaning that the customer makes the purchase in cryptocurrency through Coinbase, then the platform says to convert the value of the currency to the US dollar and pay for" Google"and"Apple".
"This news would have made a fundamental difference if Coinbase were to pay in digital currencies, but because they pay in dollars, the impact is limited," he said.
Elon Musk
The Economist adds that other factors have driven the recent rise of digital currencies, such as Elon Musk's post on dogecoin, which included a positive reference to Dogecoin, which boosted its market value.
Also among the factors that supported Dogecoin was its availability by the platform "Coinbase" last Thursday, which opens up a wider scope for trading, according to muti.