Jakarta –
The price drop Bitcoin which almost touched USD 20 thousand some time ago had an impact on many people, including this one country.
The country in question is The Savior, which in 2021 adopted Bitcoin as its official currency. The government of El Salvador currently holds 2,301 Bitcoins, which is currently valued at around USD 50.1 million.
The problem is, they spent as much as USD 105.6 million to buy the Bitcoin. As a result, its value has shrunk by around USD 55 million, or Rp. 810 billion, and it is reported that El Salvador has the potential to fail to pay its debt installments in July due to this, as quoted by detikINET from Techspot, Wednesday (15/6/2022).
However, El Salvaldor Finance Minister Alejandro Zelaya dismissed the news and claimed that the Bitcoin price slump only poses a small risk to the Latin American country’s finances.
“When they told me that the fiscal risk in El Salvador due to Bitcoin was very high, I couldn’t help but smile. The fiscal risk was minimal,” Zelaya explained at a press conference.
Citing estimates from Deutsche Welles, Bitcoin held by the Government of El Salvador has decreased in value by as much as USD 40 million. According to Zelaya, that amount of money is not even 0.5% of their state budget.
El Salvador President Nayib Bukele seems to be a big believer in Bitcoin. From initially only having 400 bitcoins, with a value of USD 20.9 million, then he continued to increase Bitcoin deposits for his country.
He bought a lot of Bitcoins as their value fell, with the highest price per coin being USD 60,000, and the lowest price being USD 30,000, where Bukele took 500 bitcoins. Now, the price of Bitcoin has fallen to USD 20,834 its lowest point since December 2020.
Watch Videos “Despite the Decline, Developers Believe Crypto Prices Will Remain Bullish“
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(asj/fay)
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