The Minister of Finance of El Salvador responded to the criticism of the country’s Bitcoin Investment strategy.
El Salvador is the first country, which adopted Bitcoin as currency on 7 September 2021. In October 2021, El Salvador started to buy Bitcoin at a price of around $60k per BTC which was high. Initially, the country purchased small amounts of Bitcoins at a high price, to provide liquidity to the Country’s official digital Bitcoin wallet and also from the point of the national fund as an alternative option to gold.
In the last 2-3 days the price of Bitcoin faced a significant downfall. On 14 June, Bitcoin touched the $20,813 price on the Binance crypto exchange. The current price of Bitcoin is $22,208 which is 4.3% down from the last 24 hours’ trade price.
During the significant downfall in the price of Bitcoin, many Bitcoin critics in El Salvador raised questions about the country’s Bitcoin investment plan. Few people said that the country lost around $40 Million because of the significant correction in Bitcoin price.
During the press conference held on Monday, Alejandro Zelaya, the Minister of finance of El Salvador, passed his statement against the critics and noted that the country is not at a loss with its Investment in Bitcoin.
“There is a clear criticism of Bitcoin as such, not of El Salvador’s strategy. El Salvador is what interests them the least, they (the media outlet) are not interested in what happens to our economy, they are not interested in what happens with our people, what happens with inflation.”
The Minister became a true bitcoin lover and said that country is not in loss because the country didn’t sold its Bitcoin.
“I have said it repeatedly: A supposed loss of 40 million dollars has not occurred because we have not sold the coins.”
Through this statement, Minister passed his comment as a bitcoin believer and also indirectly hinted that Bitcoin will soon rebound.
On the risk associated with bitcoin investment because of its volatility, the Minister said that bitcoin investment risk is extremely minimal. Overall, the Minister tried to ignore the risk factor of Bitcoin volatility.
At present time, El Salvador is holding a total of 2,301 Bitcoins, which is worth $50 million by press time, which is around half of the actual value of what the country invested in Bitcoin.