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El Salvador marks 3 years of Bitcoin adoption with $31M profit

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El Salvador is commemorating the third anniversary of its groundbreaking decision to adopt Bitcoin as legal tender. This historic move, which made El Salvador the first country to embrace cryptocurrency at a national level, has elicited a range of responses from both domestic and international observers.

On September 7, 2021, El Salvador’s government made headlines by introducing Bitcoin as a parallel currency alongside the U.S. dollar. This bold initiative aimed to enhance financial inclusion and stimulate economic growth in a country with significant unbanked populations.

In the three years since the adoption, the country has witnessed notable developments. The Salvadoran government reports that Bitcoin usage has contributed to financial inclusion efforts, with thousands of Salvadorans now using digital wallets for transactions. The government’s Bitcoin wallet, Chivo, has also seen substantial uptake, with millions of users registered.

Despite these advancements, the Bitcoin experiment has faced considerable challenges. The cryptocurrency’s volatile nature has led to fluctuations in the value of Bitcoin holdings, creating financial uncertainty. Critics argue that the adoption has resulted in economic instability and have raised concerns about the impact on public finances.

El Salvador’s President, Nayib Bukele, has remained a staunch advocate of Bitcoin, viewing it as a transformative tool for economic innovation and financial autonomy. Under his leadership, the country has also invested in Bitcoin bonds and other related projects, aiming to position itself as a global cryptocurrency hub.

However, not all reactions have been positive. International financial institutions, including the International Monetary Fund (IMF) and World Bank, have expressed reservations about the potential risks associated with Bitcoin adoption. The IMF has cautioned that Bitcoin’s volatility poses a threat to macroeconomic stability, while the World Bank has highlighted the challenges of implementing cryptocurrency-based financial systems in developing countries.

As El Salvador moves forward, the government continues to explore ways to integrate Bitcoin into its economy while addressing the criticisms and challenges that have emerged. The anniversary serves as a moment to reflect on the impact of this ambitious experiment and consider the future trajectory of cryptocurrency in the country.

El Salvador’s Bitcoin journey remains a subject of global interest, illustrating both the potential and pitfalls of cryptocurrency as a national currency. The coming years will reveal whether this pioneering experiment will lay the groundwork for broader cryptocurrency adoption or serve as a cautionary tale for other nations considering similar paths.

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7-Eleven South Korea to accept CBDC payments in national pilot program

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7-Eleven is set to participate in the testing phase of a central bank digital currency (CBDC) initiative, running from April to June. The retail giant’s involvement highlights the growing push for digital currency integration in everyday transactions.

The pilot program will assess the feasibility of CBDC payments at 7-Eleven stores, allowing customers to make purchases using the digital currency. The initiative is part of a broader effort to explore the real-world application of CBDCs in retail environments, potentially shaping future payment systems.

As central banks worldwide accelerate their digital currency research, private sector collaboration is seen as crucial for widespread adoption. If successful, 7-Eleven’s participation could pave the way for broader CBDC usage across retail and commercial sectors.

The outcome of the testing phase will provide valuable insights into consumer adoption, transaction efficiency, and potential regulatory considerations, influencing how CBDCs are integrated into mainstream financial systems.

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SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

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The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have agreed to pause legal proceedings as both sides explore a potential resolution to their ongoing lawsuit. The move signals a possible settlement in the high-profile case, which centers around Gemini’s now-defunct Earn program.

The SEC initially sued Gemini, alleging that the Earn program—designed to offer users yield on crypto deposits—operated as an unregistered securities offering. Gemini has pushed back against the claims, arguing that its operations complied with regulatory standards.

By pausing litigation, both parties may be looking for a compromise that could set a precedent for crypto lending products in the U.S. A settlement could also provide regulatory clarity for similar platforms navigating SEC scrutiny.

While the outcome remains uncertain, the crypto industry is closely watching the case, as its resolution could impact future enforcement actions and the broader regulatory approach toward digital asset lending services.

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GameStop finishes $1.5B raise to add Bitcoin to its balance sheet

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GameStop has successfully completed a debt offering, raising capital that may be used to acquire Bitcoin, signaling the company’s deeper foray into digital assets. The move aligns with its broader strategy to diversify beyond traditional retail operations and into emerging financial technologies.

While GameStop has not confirmed the exact allocation of the funds, market speculation suggests that a portion could be used to buy Bitcoin, following in the footsteps of companies like MicroStrategy. The potential investment would reinforce GameStop’s ongoing pivot toward blockchain and digital assets, an effort that began with its NFT marketplace and crypto-related initiatives.

Analysts see this development as part of a growing trend of corporations exploring Bitcoin as a reserve asset amid concerns over inflation and monetary policy. If GameStop proceeds with the acquisition, it could further validate Bitcoin’s role as a strategic investment for publicly traded companies.

The company’s board will ultimately decide how the newly raised capital is deployed. Investors and the broader crypto market are watching closely for any official announcements regarding GameStop’s Bitcoin strategy.

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