El Salvador recently loaded her nation’s crypto bag with 500 Bitcoins. These coins were acquired at an average price of $30,744 per Bitcoin. This was made known by President Nayib Bukele in a tweet, after the crypto purchase was done on May 9, 2022.
To date, this is the largest cryptocurrency purchase the country has made. With this $15.5 million huge buy, El Salvador now holds a total of 2,301 Bitcoins, according to Bloomberg.
Since July 2021, this is the first time Bitcoin has fallen below the $31,000 mark. President Nayib Bukele didn’t fail to take advantage of the massive dip as he saw a huge opportunity.
Remember, the country became the first nation to make Bitcoin legal tender in September 2021. Since then, the country has been accumulating Bitcoin at different support zones.
El Salvador and Crypto Adoption
President Nayib Bukele continues to show a relentless unwavering commitment and adoption of cryptocurrency (Bitcoin). This led to the release of the Central American nation’s bitcoin wallet, Chivo. More so, several bitcoin ATMs have been installed in the country while businesses have been encouraged to accept cryptocurrency payments.
Per reports, Bukele earlier pledged to build a tax-free Bitcoin City on the Salvadoran coast (La Unión) and funded by a bitcoin bond. This is aimed at fast-tracking citizenship for blockchain investors. Other plans rolled out include the establishment of geothermal bitcoin mining facilities that could make the country a center for global cryptocurrency mining.
Crypto Adoption in El Salvador Faces Challenges
On the other hand, some Salvadorians, critics, and global financial actors have raised concerns over these crypto moves by the CEO of El Salvador. Likewise, drawbacks have been faced in the country’s crypto revolution, and in turn, things aren’t going as expected by the President.
Currently, the $1 billion bitcoin-backed bond projected to be launched between March 15 and March 20 for the Bitcoin City project has been delayed.
Accordingly, a recent paper by the National Bureau of Economic Research reveals that many Salvadorians have ditched the Chivo wallet as they complain of functionality and security issues. Also, a recent survey showed that 91% of Salvadorians still prefer the dollar despite the nation’s crypto-friendliness. Overall, citizens have mixed feelings over the crypto move.
In addition, following El Salvador’s decision to make Bitcoin legal tender, the international bond markets and lenders now see the nation as a risky debtor. Also, judging from the volatility and instability of Bitcoin, financial entities like the International Monetary Fund (IMF) opine that the country’s economy could suffer.
President Bukele Remains Bullish on Bitcoin
However, Bukele and his associates do not think so as they remain bullish on Bitcoin and hopeful about its inclusion. Repeatedly, El Salvador’s financial authorities have insisted that Bitcoin would be an asset to its economy and not a liability.
The President and many legislators in the nation hold on to the notion that embracing crypto (Bitcoin) would bring the unbanked citizens into the economy, ease cross-border payments as well as boost the nation’s economy.