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Bitcoin became the official currency of El Salvador

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Since yesterday, El Salvador has two national currencies: the traditional one, the US dollar, and the brand new one, Bitcoin. This Central American country was the first to adopt cryptocurrency as legal tender.

Three minutes before midnight on September 7 local time, President Nayid Bukele tweeted that the country is going to “make history” with this step. At the same time, he previously confirmed that El Salvador bought 400 bitcoins, which is approximately equivalent to $ 20.9 million at the time of purchase.

Under the new law, El Salvador’s citizens will be able to pay taxes in bitcoin, and shops will be able to set prices in digital currency. Money exchanged for cryptocurrency will not be subject to capital gains tax. This move makes El Salvador the first country to officially have Bitcoin on its balance sheet, store and display it as part of its reserves.

El Salvador has been preparing for the entry into force of the law (passed in June) for several months. So, in August, 200 ATMs were installed throughout the country for the convenience of converting cryptocurrencies into US dollars and vice versa. El Salvador also launched its own digital wallet called Chivo, each user of which is promised $ 30 in bitcoins in order to stimulate the use of cryptocurrency and settlements in it.

Bitcoin became the official currency of El Salvador

This is what an ATM with cryptocurrency support looks like.

Proponents of including Bitcoin as a national currency say the move will make it easier and cheaper for migrants to send money back home to El Salvador. And this is important, as remittances account for over 24% of the country’s gross domestic product, according to the World Bank. It is also believed that this step will improve citizens’ access to financial services.

However, there is another opinion. There are concerns that the adoption of such a volatile currency could threaten the country’s economic stability. Suffice it to recall how Bitcoin almost halved in the summer. The law passed in El Salvador has already led to the fact that Moody’s decided to downgrade El Salvador’s credit rating. The IMF also warned of the potentially destabilizing effects of the new law.

Interestingly, the actions of the El Salvadorian authorities did not help Bitcoin itself: by the end of yesterday, its quotes fell by about 12%.

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Electric Cars

The electric vehicle market has set a record: more than half a million cars were sold in just a month, of which 50% were bought in China

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As reported by TheElec with reference to EV Volumes, the total sales of electric vehicles in August exceeded half a million units. More precisely, it is said about 510 thousand cars, including countries for which data were not available.

It also reported that total sales doubled from the same month a year ago. Interestingly, more than half of all electric vehicles sold (about 260 thousand units) in August were registered in China. In Germany, about 52 thousand electric vehicles were sold, while sales in the US market amounted to about 44 thousand units.

In France in August of this year, 17,000 electric vehicles were sold, in Norway – 14,000 vehicles, in South Korea, sales reached 9,600 units, which is 172% more compared to the same period last year.

EV Volumes also clarified that the launch of the Tesla Model Y and Hyundai Ioniq 5 in new markets spurred sales in August. Tesla Model 3 was the most popular electric vehicle, with global monthly sales of 282,000, and EV Volumes predicts total sales of electric vehicles this year to reach 6.41 million.

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Gaming

Another PlayStation 5 achievement. In the UK, 1 million consoles were sold in record time.

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PlayStation 5 has set another record. This time in the UK, where the console sold 1 million units in 39 weeks from its launch.

This is the best result among Sony consoles in this country. In particular, the PS4 took three weeks longer to achieve the same achievement. Moreover, until July, the PS4 was ahead of the PS5, but only because of the deficit of the latter. Since the middle of summer, there have been more new consoles in the UK, and the PS5 has easily bypassed its predecessor.

It is also worth noting that a month earlier, Sony reported that it had already sold 10 million PlayStation 5 consoles. That is, almost 10% at the moment fell on only one UK.

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Phones

Geely founder sets up a smartphone manufacturing venture

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Chinese carmaker Geely, which owns Volvo, has announced that its chairman Eric Li, also known as Li Shufu, is setting up a new company that will make premium smartphones.

Founder Zhejiang Geely Holding’s new venture will aim to launch its first smartphone by 2023 and sell 3 million units in the first year.

Lee had previously made futuristic bets on ventures such as flying cars and helicopter taxis. In a smartphone market that is no longer growing in China, the new company will have to compete with Apple, Xiaomi and other established manufacturers.

Notably, smartphone makers are looking to enter the electric vehicle market, realizing that the smartphone boom is coming to an end. However, Geely is the first car manufacturer to try to move in the opposite direction.

The company said in a statement to Reuters that the new company will be called Hubei Xingji Shidai Technology Co Ltd and that it has already signed an agreement with the Wuhan Economic and Technological Development Zone to establish a headquarters in the central city of Wuhan. Li owns 55% of Xingji Shidai. The project will be financed with an investment of $ 1.55 billion.

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