El Salvador President Nayib Bukele speaks during a news conference in San Salvador, June 6, 2021. PIcture: REUTERS/JOSE CABEZAS
El Salvador President Nayib Bukele speaks during a news conference in San Salvador, June 6, 2021. PIcture: REUTERS/JOSE CABEZAS

In this edition of the Business Day Spotlightwe review this week’s bitcoin market crash - its causes, implications and outlook.

Our host Mudiwa Gavaza is joined by Marius Reitz, GM for Africa at cryptocurrency exchange Luno.

Reitz explains the recent bitcoin market crash and what it means for investors.

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Earlier this year, the government of the Central American country of El Salvador decided it would allow bitcoin to be used as legal tender for the buying and selling of goods and services in its economy.

Mudiwa Gavaza. Picture: DOROTHY KGOSI.
Mudiwa Gavaza. Picture: DOROTHY KGOSI.

While this seems progressive within the context of governments that for years looked at cryptocurrencies with suspicion, the implementation left a lot to be desired. After a bungled rollout this week, the price of bitcoin plunged by almost a fifth.

At the time of publishing, one bitcoin cost R661,703.42.

Topics of discussion include: the recent bitcoin market crash and what it means for investors, El Salvador’s rollout of bitcoin as legal tender, the growth of cryptocurrencies during the pandemic, an update of how SA regulators view cryptocurrencies, and the outlook for the sector.

For more episodes, click here.

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Business Day Spotlight is a MultimediaLIVE production.

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