El-Salvador was the first country to use Bitcoin as legal tender and accept the cryptocurrency for all kinds of transactions. To make it effective, the government also launched the new digital wallet application, crediting $30 in bitcoins to each citizen of the country. The wallet supports both Bitcoin and the existing legal currency in the country, US dollars. In addition, 200 new ATMs were also successfully installed in El-Salvador.
After doing all these development events in the country, research was done to see how well they were working, and the report was not very impressive. With this, it was shown that Salvador’s day-to-day use of bitcoin was gradually falling.
Even after experiencing this drop, the president, Nayub Bukele, had recently bought 500 bitcoins on Monday, at an average rate of $30,744 each, which was considered the largest volume of Bitcoin that the Latin American country had bought since Bukele agreed. Bitcoin as legal. bidding.
And collectively, the country now has over 2,000 units dropping to the tune of $40 million. El-Salvador has spent almost around $105 million on his bitcoin purchase, but the value of his Bitcoin holdings on Monday May 12 was worth only $66 million.
Bukele adopted Bitcoin as legal tender in the country to improve the economy, the value of BTC has fallen 45% since El Salvador bought its first coins. The losses experienced for so long have not deterred the country much, as Bukele took advantage of the recent price drop to buy an additional 500 BTC.
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Effect of Loss in El-Salvador
BItcoin adoptions in indebted countries like El-Eslavador have drawn much criticism, the country’s losses on bitcoin investments are equal to its next interest payment to bondholders, which is due on June 15. The current situation reported by the former head of the country’s Central Bank Carlos Acevedo on investments in bitcoins is Ricky because it is an extremely volatile asset and it is an investment that is entirely at the discretion of the president.
He buys it on his phone when he wants to take advantage of the tip, but he doesn’t do it right because when he buys, there’s always a bigger drop.” The lack of responsibility and the impulsive purchases made by President Bukele have divided its citizens and strained the country’s relationship with organizations such as the International Monetary Fund (IMF). Talks between the IMF and El-Salvador on an extended fund facility had been stalled since last year.
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