Almost a year ago, El Salvador adopted Bitcoin (BTC) as legal tender. This decision has raised many concerns, both inside and outside the country. Despite the bear market, Alexander Zelaya, the country’s finance minister, says the initiative is having a huge positive impact in the region.
A project that is bearing fruit, according to Alejandro Zelaya
According to the Salvadoran Minister of Finance, the legalization of bitcoin in the country has generated significant added value and this Salvador-Bitcoin idyll is far from over.
“Bitcoin provided financial services to the unbanked and provided investment. […] We will announce other Bitcoin-related projects in the coming months”did he declare.
The politician also added that the adoption of bitcoin has helped attract maximum tourists and investors to the country.
Since the start of the project, the government has purchased around 2,301 BTC with an estimated value of $104 million. However, the bear market caused the value of these assets to plummet. Result, it fell to 46.6 million dollars, a loss of more than 50%. However, the situation seems to be improving. With the recent rise in bitcoin price, these assets stand at nearly $55.3 million at the time of writing.
Bitcoin investments planned for this year
Currently, most Salvadorans find it difficult to use bitcoin in day-to-day transactions. However, the government is not ready to give up on its project. He even plans to invest $1 billion in bitcoin bonds in the coming months. However, he is waiting for the market to be favorable to him before proceeding with this operation.
Additionally, El Salvador is rumored to receive a $6 billion bitcoin grant from investment platform BnkToTheFuture.
Despite the many criticisms, El Salvador maintains its position. For Zelaya, so far the new monetary system is working. However, you will have to wait longer for better results.
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I came to blockchain out of curiosity and stayed with it out of passion. I was amazed by the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.