Despite warnings from global agencies regarding its adoption of Bitcoin (BTC), the Salvadoran government continues to seize market opportunities.
As the price of Bitcoin fell below $ 46,000 on Monday morning, Salvadoran President Nayib Bukele announcement on Twitter that the country has “redeemed the decline”. With 150 new coins, the Central American government now holds 700 BTC, worth almost $ 32 million at the time of writing.
In an obvious nod to the ‘non-financial’ warnings displayed in the crypto ecosystem, Bukele shared his ‘presidential advice’ recalling that ‘they can never beat you if you buy the dips’.
– Nayib Bukele (@nayibbukele) September 20, 2021
As TUSEN reported, El Salvador bought another drop the day BTC became legal tender in the country, when Bitcoin crashed below $ 43,000.
El Salvador’s move to adoption has thrilled the crypto universe, especially with the possible tax exemption for Bitcoin investors. However, the government’s decision to adopt Bitcoin as legal tender is not entirely without its problems.
In addition to protests and marches against the government’s Bitcoin decision, the Standard and Poor’s Global rating agency said the adoption “has immediate negative implications” for the country’s credit rating. S&P also claimed the move would hurt El Salvador’s chances of securing a billion-dollar loan deal from the International Monetary Fund.
Related: El Salvador Bitcoin Day: the first in a long series or unique?
El Salvador made history by becoming the first country to recognize Bitcoin as legal tender on September 7. The government then held 400 BTC. Taking advantage of two price drops in two weeks, buying 150 coins each time, El Salvador increased its Bitcoin holdings to 700 BTC.