The Salvadoran president’s publication comes at a time when Bitcoin fell below $20,000 this Saturday, for the first time since December 2020, in a generalized environment of crashes that affects the sector. In the last 24 hours, Bitcoin fell 30% of its value.
The largest drop in the cryptocurrency leader occurred on Monday, when it lost 15%, after it was learned that the cryptocurrency trading platform Celsius Network suspended all transactions between clients and vetoed the withdrawal of capital due to “extreme conditions”. From the market. According to the head of the Ministry of Finance, Alejandro Zelaya, El Salvador “has had no losses” due to falls in the price of bitcoin. He also pointed out that the tax risk due to the implementation of the cryptoactive as a payment currency together with the US dollar in the country is “extremely minimal.”
Between September 6, 2021 and last May 9, El Salvador accumulated 2,301 bitcoins for more than 100 million dollars. The investments in 10 purchases announced by President Nayib Bukele, and of which no information is provided beyond the president’s tweets, range between US$30,700 and US$58,000.
The International Monetary Fund (IMF), entity with which the Bukele government was negotiating an agreement for up to 1,400 million, urged the country to “limit the scope of the Bitcoin Law by eliminating its status as legal tender” and also expressed its “concern” about the issuance of backed bonds with cryptocurrency.
The risk rating agencies have pointed out the growing need for financing that the Salvadoran Government will have, which in 2023 must pay 800 million dollars of Eurobonds.
Source: Ambito
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