Bitcoin gains ground in El Salvador despite strong price decline

According to El Salvador’s Finance Minister Alejandro Zelaya, the Bitcoin (BTC) adoption in the country is growing strongly. It news was shared during a Bloomberg interview with the minister.

The Central American country kicked off its Bitcoin adventure last year when it announced 400 bitcoins buy. At the same time, the country made bitcoin an official and legal tender. Since then, El Salvador under the leadership of Nayib Bukele, the country’s president, has been increasing bitcoin accumulated. However, since the recent market crash, the government of El Salvador has suffered more than 50% losses in its bitcoin purchases. In total, the country has 2301 BTC purchased (since September last year) for $103.9 million. At the beginning of this month, it was only worth $46.6 million. This equates to a decrease of more than 55%.

Despite the bitcoin losses, the country is positive towards bitcoin. For example, Alejandro indicated that despite the sharp decline in price, bitcoin has been very beneficial for the inhabitants of the tropical country. Especially the bankless population now has access to digital financial resources. In addition, (foreign) investments and tourism in the country have increased significantly. “It is a phenomenon that exists and is gaining ground and will continue to exist for years to come,” said Alejandro. A confirmation of the long-term belief and belief that El Salvador has in Bitcoin.

El Salvador continues to believe in Bitcoin

During the crypto market crash, El Salvador has continued to invest in Bitcoin adoption. This is how the country wants 20 “Bitcoin schools” to build with the profit it gets from its bitcoin investments. These schools should train the local population to become blockchain experts and give the country a hub for crypto enthusiasts. In addition, President Bukele wants to enter the world’s first bitcoin bond, worth $1 billion to introduce. Unfortunately, this bond is currently deferred due to the current unfavorable market conditions. The Finance Minister indicated that he would reconsider the idea as soon as market conditions improve.

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Since the country’s Bitcoin adoption, El Salvador has also been receiving a lot of criticism. For example, in January the International Monetary Fund (UN Organization for International Monetary Cooperation) urged the country to end bitcoin’s status as legal tender. “New technologies have shown how in previous years people have been afraid of things like websites and digital things, but over time it has become apparent that reality imposes itself,” Zelaya added.

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