El Salvador is the first country to have decreed that bitcoin (BTC) is a legal currency. However, the authorities’ approach has not been completely successful, since part of the population remains attached to fiduciary money to the detriment of cryptocurrency. Indeed, she fears that the value of BTC will collapse and that is what happened. BTC lost 17.5% in a few weeks.
El Salvador lost a lot of money
In his Twitter posts, President Nayib Bukele indicated the total stock of BTC his country has. According to the information he provided, in all, El Salvador has a stock of 1,391 BTC. At the current bitcoin (BTC) price, this total is approximately $71 million considering that 1 BTC is worth $51,056. However, due to the falling price of the digital financial asset, the total is around around $59 million. In other words, El Salvador’s BTC reserve has experienced erosion.
Due to regular declines in the price of bitcoin (BTC), El Salvador lost an average of $12 million. However, President Nayib Bukele and his supporters are not losing faith in cryptocurrency. They continue to believe that it will return to the path of growth and that its price will increase considerably, which would obviously be beneficial for the economy of the country.
20 bills will relate to the mining of BTC
Despite the current situation working against it, El Salvador does not intend to reverse its decision regarding the release of its billion-dollar Bitcoin bonds. El Salvador’s finance minister, Alejandro Zelaya, said the government had prepared 20 bills to establish the legal and financial framework for these obligations. It remains to be seen how these projects will be formulated and implemented.
Not only does El Salvador defend its bitcoin (BTC) project, but the country also hopes to continue to take advantage of the country’s mines. Indeed, it wants to use the abundant geothermal energy resources at its disposal to make it easier for people who mining of BTC. In addition, he strongly encourages FinTech companies to continue to develop new offers.
El Salvador will continue to make bitcoin (BTC) a digital financial asset anchored in the daily lives of its inhabitants, despite the decline in value of the cryptocurrency. It also plans to pass bills to better configure the legal and financial framework for BTC bonds.
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in 2017 on a few cryptos only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.