Cryptocurrencies were trading lower today with Bitcoin extending losses as it slipped around 5% to $33,158. Ether, the second largest cryptocurrency, was also down around 4% to trade at $2,173.6. Dogecoin, on the other hand, was trading slightly lower at $0.24. Other virtual tokens like XRP, Cardano, Litecoin fell over 2% over the past 24 hours.
Bitcoin, the world’s largest cryptocurrency by market capitalisation, is still up over 14% this year (year-to-date).
In another news, US has encouraged El Salvador to regulate use of bitcoin. A senior US State Department official met El Salvador President Nayib Bukele on Wednesday and recommended the regulation of bitcoin once it becomes legal tender in the Central American country from September.
El Salvador uses the US dollar as its official currency but on June 9 approved the adoption of bitcoin as its legal currency. It intends to use the cryptocurrency for all transactions, making it the first country to do so.
The Salvadoran government recently discussed its bitcoin decision with the International Monetary Fund, a meeting Finance Minister Alejandro Zelaya said was productive.
The World Bank, however, rejected a request from El Salvador for assistance in its attempt to adopt bitcoin as an official currency.
(With inputs from agencies)
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