El Salvador’s minister dismisses Bitcoin crash despite 50% loss in reserves | CryptoSlate

CryptoSlate

👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

El Salvador’s Bitcoin reserves diminished by 50% and lost more than $50 million with the recent Bitcoin price fall.

Despite their gravity, El Salvador’s Finance Minister Alejandro Zelaya said the losses pose a minimal fiscal risk.

El Salvador bought over 2,300 Bitcoins at different prices after accepting the currency as a legal tender in September 2021.

El Salvador’s Bitcoin Purchases (via independent.co.uk)

Since then, El Salvador earned and lost in the short term. Both the Finance Minister and the President of El Salvador have been blamed for damaging the country’s financial health. However, Minister Zelaya confidently responded:

How To Get Free Crypto  

“When they tell me that the fiscal risk for El Salvador because of Bitcoin is really high, the only thing I can do is smile”

Bitcoin adoption in El Salvador

The International Monetary Fund (IMF) criticized El Salvador’s decision to accept Bitcoin as a legal tender and strongly advised against it. The IMF report listed the drawbacks of Bitcoin as:

“[Bitcoin] entails large risks for financial and market integrity, financial stability, and consumer protection. It also can create contingent liabilities.”

However, the country dismissed the IMF’s warnings. The country’s president and the finance minister are strong pro-Bitcoiners who believe Bitcoin is the future.

Moreover, Bitcoin reduces the country’s dependence on the U.S. Dollar, which is El Salvador’s only other official currency.

Highlights since adoption

In addition to believing in Bitcoin, the country already saw the positive impacts of adopting Bitcoin as a legal tender.

One month after legalizing the currency, the country generated some short-term revenue which was enough to build 20 new schools to educate society about cryptocurrencies.

Coinbase Banner  

Within a few months of adopting Bitcoin, El Salvador’s tourism sector boomed by 30% and generated more than $1,400 million of income.

Future Plans

To increase the Bitcoin adoption in the county, El Salvador is building a “Bitcoin City.”

The architectural model of the city shows that it will be placed near the Conchagua Volcano, taking up most of the hills. The city will also have a hexagonal center, an airport, and various key landmarks.

The county started working on the city as soon as it accepted Bitcoin as a legal tender in November 2021. El Salvador’s president posted the city’s model as an update in May 2022. For now, it is unknown when the construction will begin.

The geothermal energy the Conchagua Volcano provides will also be utilized in sustainable Bitcoin mining.

The Central African Republic

Following El Salvador’s footsteps, the Central African Republic (CAR) also adopted Bitcoin as a legal tender in April 2022.

The CAR’s President Faustin-Archange Touadéra expressed his fondness of Bitcoin and said:

“For us, the formal economy is no longer an option. An impenetrable bureaucracy keeps us stuck in systems that don’t give us the opportunity to be successful. Bitcoin opens a new path to a bright future.”

The IMF criticized  CAR’s decision immediately after accepting Bitcoin as a legal tender. The IMF raised similar concerns to those it raised to El Salvador regarding volatility and integrity.

FreeBitcoin Banner  

However, it wasn’t enough to convince CAR to revoke its decision. The country is currently working on establishing Africa’s first legal Bitcoin investment platform.

Go to Source
Author: Zeynep Geylan


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.