The El Salvadoran government has increased its bitcoin holdings by buying another 500 BTC during another cryptocurrency market crash.
President of El Salvador Nayib Bukele wrote on Twitter that the country’s government purchased 500 BTC at a price of $30,744 per coin. El Salvador now has about 2,301 BTC at its disposal. This was the largest purchase of bitcoin by El Salvador since it was accepted as legal tender in the country.
This is not the first time Bukele has bought BTC during a sharp fall in the exchange rate, despite criticism from the International Monetary Fund (IMF). Earlier, the agency warned that the legalization of bitcoin as a means of payment could be very risky not only for citizens, but also for global financial stability. However, the authorities of El Salvador continue to periodically invest in bitcoin, believing that these investments will help solve the problem of inflation in the country.
Meanwhile, El Salvador is already benefiting from Bitcoin adoption. Profits generated from operations with this crypto asset are used to build schools and help animals. The Central African Republic has recently followed El Salvador’s lead by legalizing bitcoin in hopes of rebuilding the country’s economy.
Over the past few days, the bitcoin rate has “dipped” by almost $10,000, dropping below $30,000. However, Bukele is confident in the optimistic future of the first cryptocurrency. According to his forecasts, this year the BTC rate will jump to $100,000, and this is only a “matter of time”.
Source: Bits
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