Almost a year ago, El Salvador adopted Bitcoin (BTC) as its legal tender. This decision has raised many concerns, both inside and outside the country. Despite the bear market, Alejandro Zelaya, the country’s finance minister says this 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 has brought financial services to the unbanked and attracted investment. […] We will announce other projects related to Bitcoin in the coming months “he has declared.
The politician also added that the adoption of bitcoin has helped attract the maximum number of tourists and investors to the country.
Since the start of the project, the government has bought about 2,301 BTC for an estimated value of $ 104 million. However, the bear market caused the value of these assets to plummet. As a result, it dropped to $ 46.6 million, a loss of more than 50%. However, the situation appears to be improving. With the recent rise in the price of bitcoin, 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. It also plans to invest $ 1 billion in bitcoin bonds over the next few months. However, he waits for the market to favor him before proceeding with this operation.
Additionally, El Salvador is rumored to receive a $ 6 billion bitcoin grant from the BnkToTheFuture investment platform.
Despite numerous criticisms, El Salvador maintains its position. For Zelaya, the new monetary system is working so far. However, you will have to wait longer for better results.
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I came to the blockchain out of curiosity and stayed there for passion. I was amazed at 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.