A SHARP DROP IN THE VALUE TO BITCOIN COULD HURT THE AMERICA’S FISCAL HEALTH: EL SALVADOR
El Salvador's Finance Minister Alejandro Zelaya on Monday dismissed concerns that a sharp decline in the value of bitcoin could hurt the financial situation in the Central American country.
El Salvador last September became the first country to make a formal bitcoin tender, next to the US dollar, despite criticism from the International Monetary Fund and credit unions.
"When they told me that El Salvador's financial risk due to Bitcoin was really high, the only thing I could do was smile," Zelaya told a news conference. "Financial risk is very low."
Since last September, the El Salvador government has purchased 2,301 units of cryptocurrency, which has fallen on Monday to the lowest price since 2020.
Zelaya cited an earlier estimate from Deutsche Welles that the country's bitcoin portfolio lost $ 40 million.
"Forty million rand represents even 0.5% of our national budget," he said.
The price of Bitcoin has dropped by 50 percent since it became the official tender in the country.