El Salvador’s Finance Minister Believes Recent Bitcoin Collapse Will Not Hurt Their Economy.
On Monday, Alejandro Zelaya, El Salvador’s Minister of Finance, dispelled concerns that a precipitous decrease in Bitcoin’s price would have a negative impact on the nation’s budgetary health.
When he is told that the economic danger for El Salvador due to Bitcoin is so big, he stated that the only thing he can do is grin.
“When they tell me that the financial risk for El Salvador because of Bitcoin is really high, the only thing I can do is smile.”
According to Zelaya, the potential monetary damage that may be caused by a meltdown in the bitcoin market is quite low.
“The fiscal risk is extremely minimal.”
Reuters report that the value of the country’s bitcoin holdings has decreased by around $40 million. In his response, Zelaya said that forty million dollars does not even equal half of one percent of our national general budget.
“Forty million dollars does not even represent 0.5% of our national general budget,”
The government of El Salvador has invested in 2,301 units of Bitcoin since September of last year. On Monday, the value of the cryptocurrency reached its lowest point since the year 2020. Zelaya highlighted a previous assessment by Deutsche Welles which said that the value of the country’s bitcoin holdings had decreased by around $40 million.
The value of all cryptocurrencies fell by more than $200 billion as a result of the market’s decline. It is the most recent event in a string of price collapses for Bitcoin, which has seen its value fall by more than sixty percent in the space of seven months.
In the present market, the price of Bitcoin is hovering around $23,000. Every acquisition El Salvador has made so far has resulted in a loss. The BTC wasn’t acquired at present prices. 2,301 Bitcoins worth an estimated $53 million are now held by El Salvador. The $105.6 million invested by Bukele is roughly split half-and-half.
As reported by TheCryptoBasic, Microstrategy, Tesla, and El Salvador have lost over $1.3B of their bitcoin holdings value as a result of the ongoing brutal Crash.