El Salvador started the crypto rollout despite declines in Bitcoin; Coinbase faces lawsuit against its interest-bearing lending product
Salvadoran President has announced the rollout of Bitcoin on Wednesday and asked users to report problems on his Twitter feed. The country has become the first to adopt Bitcoin as legal tender. However, technological issues coupled with distrust have led to multiple street protests. Bitcoin has been pitched to the unbanked population in the country as an effective savings tool. Moreover, it also encourages migrant citizens to send money back using Bitcoin. However, before the currency’s trading volatility could be resolved, savings or remittances using Bitcoin will inevitably entail huge risks. Bitcoin continues its downtrend today, trading below the $46,000 level.
Coinbase faces lawsuit risks as SEC will sue Coinbase if it launches the interest-bearing lending product for crypto assets. After the notice, Coinbase said it would delay the launch at least until October. Shares of Coinbase closed by -3.2% as a result.