Voice of America
20 Jun 2022, 04:36 GMT+10
SAN SALVADOR, El Salvador - El Salvador's Bitcoin-boosting president has asked people to be patient after the price of the cryptocurrency fell below $20,000 - less than half the price the government paid.
According to the tracking site nayibtracker.com, El Salvador under President Nayib Bukele's administration has spent about $105 million on Bitcoin, starting last September and paying an average of almost $46,000 per coin.
The value of that investment in the currency, also known as 'BTC,' is now calculated to have fallen by more than 57%, or around $61 million.
'I see that some people are worried or anxious about the #Bitcoin market price,' Bukele wrote on his Twitter account late Saturday. 'My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.'
'Patience is the key,' the president wrote.
On Tuesday, when a Bitcoin publication crowed that El Salvador had lost 'only' $40 million on its investment, Bukele tweeted with apparent incredulity: 'You're telling me we should buy more #BTC?'
Bukele became the first leader in the world to make the cryptocurrency legal tender last year and was a devoted booster at least up to May, when he boasted of 'buying the dip' in the currency's price. But the coin has slid further since then.
No real loss, minister says
Finance Minister Alejandro Zelaya sought to put a good face on the situation Wednesday in an interview with a local television station, saying that because El Salvador hadn't sold any of its Bitcoins, it hadn't really suffered any loss.
'When they tell me that El Salvador's budgetary risk has increased because of the supposed loss, that loss doesn't exist,' Zelaya said. 'That must be made clear, because we have not sold.'
Most companies and governments do write down the value of what accountants call an 'unrealized loss,' even if they don't sell the distressed asset.
Zelaya also insisted the Bitcoin slide didn't matter very much for El Salvador, saying, 'This doesn't even represent 0.5% of our budget.'
That might prove a hard sell in a country where about one-fifth of the people lives on less than $5.50 per day.
In January, El Salvador rejected a recommendation by the International Monetary Fund to drop Bitcoin as legal tender.
Zelaya said at the time that 'no international organization is going to make us do anything, anything at all,' calling it an issue of 'sovereignty.'
The IMF recommended that El Salvador dissolve the $150 million trust fund it created when it made the cryptocurrency legal tender and return any of those unused funds to its treasury.
The IMF cited concerns about the volatility of Bitcoin prices, and the possibility of criminals using the cryptocurrency.
Bukele has touted Bitcoin as a way to significantly increase financial inclusion, drawing millions of people who previously lacked bank accounts into the financial system. He has also spoken of the parallel tourism promotion targeting Bitcoin enthusiasts.
Bukele led the push to adopt Bitcoin as legal tender alongside the U.S. dollar. El Salvador's Legislative Assembly made the country the first to do so in June 2021.
Get a daily dose of Travel Trade news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Travel Trade.
More InformationWASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
Paschim Medinipur (West Bengal) [India], July 13 (ANI): Continuous rainfall has led to severe flooding in several parts of West Bengal's...
Ramban (Jammu and Kashmir) [India], July 13 (ANI): The Ramban district administration has made elaborate and round-the-clock arrangements...
The organization was banned last month after its members broke into an airbase and vandalized two military planes More than 70 people...
Mehsana (Gujarat) [India], July 13 (ANI): The father of Sanket Goswami, a 19-year-old student who died in last month's Air India AI171...